The mortgage offers advertised on Bankrate.com grew just a bit less generous in the past week. The average rate on mortgages clicked on by Bankrate readers Wednesday rose to 2.51 percent, up 5 basis points from the previous Wednesday.
This “clicked-on” rate reflects purchase mortgages and refinances with all terms, including 30- and 15-year loans. The rates may include discount points.
The sweetest deals come with caveats. For instance, to score the best combination of rate and costs, you’ll generally need a credit score of 740 or higher and a down payment of 20 percent or more. And many of the lowest rates posted on Bankrate.com include discount points, a way of buying down the rate by paying more at closing.
Rates for mortgages change constantly. Rates rose fast in early March, then slowed later in the month. In April and May, rates reversed course, falling for five weeks in a row, according to Bankrate’s national survey of lenders. The up-and-down trends reflect the unpredictability of the mortgage market as the economy continues its uneven recovery from the COVID-19 recession.
Even after their recent moves, rates remain much lower than they were before the coronavirus pandemic sent rates to record lows. That means it can still make sense to refinance your mortgage.
Compare mortgage rates in your area now.
Average clicked on rate for purchase loans
The average rate clicked on by Bankrate readers for 30-year purchase mortgages rose to 2.74 percent from 2.65 percent seven days earlier. At that average rate, you’ll pay $407.71 per month in principal and interest for every $100,000 you borrow.
Average clicked on rate for refinance loans
The average rate clicked on by Bankrate readers for 30-year refinances rose to 2.69 percent from 2.62 percent the previous Wednesday.
You can use Bankrate’s mortgage payment calculator to find your monthly payments and see the effects of making extra payments. The tool also will help you determine how much interest you’ll pay over the life of the loan.