July 11th, 2019 2:10 PM by Jackie A. Graves, President
Last week, the share of
borrowers who received rates under 4.25% rose to 60.1%.
Mortgage borrowers who shopped around last week could’ve saved
$56,826 on the life of a $300,000 loan, according to LendingTree's
Mortgage Rate Competition Index.
measures the spread in the APR of the best offers available on its website.
LendingTree derives that savings claim by comparing the amount a borrower would
pay out of over the life of a loan at the lowest available interest rate on its
site versus the highest available interest rate.
According to the company’s data, the share of borrowers who
received rates under 4.25% rose to 60.1%, with the index growing to 1.19
for the week ending July 7, 2019.
percentage is a moderate increase from last week’s 57%, and still
surpasses 2018’s rate when only 0.06% of purchase offers were under 4.25%.
also highlights that across all 30-year, fixed-rate purchase mortgage
applications made on LendingTree’s website, 14.3% of borrowers were offered an
interest rate of 4.125%, making it the most common interest rate.
When it came
to 30-year fixed-rate refinance borrowers, 72.8% received offers under 4.25%,
rising from 70.4% one week prior. Despite the decline, this rate is still up
from 2018’s rate when 0% of refinance offers were under 4.25%.
with a wider refinance market index of 1.33, the typical refinance borrower
could have saved $65,188 by shopping around for the lowest rate.
According to the
report, across all 30-year, fixed-rate refinance applications, the most
common interest rate was 3.875%. This rate was offered to 18.9% of borrowers.
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