LendingTree's latest Mortgage Rate Competition Index revealed that borrowers with interest rates under 5% slid further for the week ending Feb. 17, 2019.
The report states that for 30-year fixed-rate mortgages, 84.2% of purchase borrowers received offers with interest rates under 5%, falling from 87.8% last week. Notably, this is a decrease from 2018’s rate when 88.2% of purchase offers were under 5%.
The report also highlights that across all 30-year, fixed-rate mortgage purchase applications made on LendingTree’s website, 21.2% of borrowers were offered an interest rate of 4.625%, making it the most common interest rate.
Furthermore, 80.5% of 30-year fixed-rate mortgage refinance borrowers received offers under 5%, rising from 78.8% one week prior. This is moderately down from 2018’s rate when 85.1% 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 20.7% 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 came in at 0.68. However, the refinance market index was wider, coming in at 0.78.
“The distribution of rates — and as a result, the Mortgage Rate Competition Index — has widened as rates increased, reflecting how mortgage lenders may change the rates at which they can offer consumers loans, depending on their unique business circumstances,” LendingTree writes.
(Click to enlarge, Source: LendingTree)
NOTE: The LendingTree Mortgage Rate Competition Index measures the spread in the APR of the best offers available on its website.