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Published: Sep 29, 2020 5 min read

Borrowers with 700 credit scores were quoted an average rate of 3.548% to secure a 30-year fixed-rate purchase mortgage on Monday, according to Money's daily survey of over 8,000 lenders across the United States. At this credit score, roughly the national average, the rate for a 30-year refinance was 4.496%. Our rates include discount points and are for borrowers putting 20% down.

30-year fixed-rate purchase mortgage
3.548%
Rate of September 28, 2020
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Borrowers in Pennsylvania were quoted the lowest mortgage rates on Monday — at 3.336%. Those in New Mexico saw the highest average rate at 3.856%. Nationwide, borrowers with the highest credit scores, 740 and above, were quoted rates averaging 3.071%, while those with credit of 640 or below were given rates of 4.783% — a 1.712 percentage-point spread.

You may be able to negotiate a lower rate if you shop around or if you have other accounts with the lender. (Money's picks for the best mortgage lenders are here.) Currently, some banks are hiking up advertised rates to keep demand in check, so you may be offered a lower rate if you reach out directly.

Freddie Mac's widely quoted Primary Mortgage Market Survey put rates at 2.90% with 0.8 points paid for the week ending September 24. The mortgage purchaser's weekly survey reflects borrowers who put 20% down on conforming loans and have excellent credit.

Refinance rates today

Money's survey also shows that the offered rate for a 30-year refinance for someone with a 740 credit score was 3.787% on Monday. Last September, the average mortgage rate (including fees) was 3.922%.

30-year fixed-rate mortgage refi
3.787%
Rate of September 28, 2020

A homeowner with a $200,000 mortgage balance currently paying 3.922% on a 30-year loan could potentially cut their monthly payment from $946 to $930 by financing at today's lower rates. To determine if it's worth it to refinance your mortgage, also consider the closing fees you paid on your current mortgage, how much your new lender is charging and how long you have left on your loan term. (Our picks for the best lenders for refinancing are here).

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What else is happening in the housing market right now?

The number of homeowners who are in forbearance plans decreased again this week, dropping 6 basis points to 6.87% of mortgage loans for the week ending September 20, according to the Mortgage Bankers Association. This represents an estimated 3.4 million homeowners still taking advantage of the loan deferment programs.

The share of Freddie Mac and Fannie Mae loans in forbearance decreased for the 16th straight week, while the share of Ginnie Mae (VA and FHA loans) and private loans in the program remained flat.

"Many homeowners with GSE loans are exiting forbearance into a deferral plan and resuming their original mortgage payment, but waiting to pay the forborne amount until the end of the loan," said Mike Fratantoni, MBA's chief economist. "However, the overall picture is still somewhat of a mixed bag. The recent uptick in forbearance requests, particularly for those with FHA or VA loans, is leaving the Ginnie Mae share elevated, as the pace of new requests meets or exceeds the pace of exits."

Added Fratantoni, "The continued churn in the job market is likely keeping many homeowners who have been in forbearance reluctant to exit, given the level of economic uncertainty."

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Mortgage Prediction of the Week

Expert views on what comes next

Christian Ross, managing broker for Engel & Volckers Atlanta, on how long home buyer demand will remain strong:

For more on housing demand, read: Everyone Wants to Buy a House Right Now. 9 Experts Predict How Long Demand Will Soar

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Bottom line:

Mortgage Rates Vary From State to State. Here's How to Get the Best Deal if You're Moving

The Ultimate Guide to Ditching the City and Moving to the Suburbs

Procrastinators, It's Not Too Late to Refinance Your Mortgage and Save Thousands