Mortgage

LendingTree: Share of borrowers with interest rates under 5% climbs

85% of borrowers received rates under 5%

The share of borrowers with interest rates under 5% is growing, signaling Americans are getting more bang for their buck.

According to LendingTree's Mortgage Rate Competition Index, borrowers with rates under 5% hit 85% for the week ending Feb. 3, 2019. 

“Homebuyers could have seen median lifetime savings of $30,858 in interest on a $300,000 loan by comparison shopping for the best mortgage rates,” LendingTree Chief Economist Tendayi Kapfidze said.

The report states that for 30-year fixed-rate mortgages, 84.6% of purchase borrowers received offers under 5%, rising from 78.9% last week. Notably, this is still a decrease from 2018’s rate when 89.2% of purchase offers were under 5%.

LendingTree also highlights that across all 30-year, fixed-rate mortgage purchase applications made on its website, 20.7% of borrowers were offered an interest rate of 4.625%, making it the most common interest rate.

According to the report, 75.6% of 30-year fixed-rate mortgage refinance borrowers received offers under 5%, moderately increasing from 72.7% one week prior. This is still down from 2018’s rate when 87.2% of refinance offers were under 5%.

Lastly, across all 30-year, fixed-rate mortgage refinance applications, the most common interest rate was 4.625%. This rate was offered to 18.8% of borrowers, according to the report.

When it came to mortgage competition, LendingTree reports that across all 30-year fixed-rate mortgage purchase applications on its site, the index edged up to 0.66. And the refinance market index was wider, climbing to 0.83.

 (Click to enlarge)

Mortgage Rate competition index

NOTE:  The LendingTree Mortgage Rate Competition Index measures the spread in the APR of the best offers available on its website.

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