The average rate for mortgage offers clicked on by Bankrate readers Thursday was 3.34 percent, a number that shows consumers can still find deals even as mortgage rates have risen from their all-time lows. If you aim to get a mortgage or refinance, shopping around is more important than ever.
The sweetest deals come with some fine print. 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, and they’ve risen sharply from all-time lows set last year. Those ups and downs reflect the volatility of the mortgage market as the economy continues to recover from the sudden shock of the COVID-19 recession, as inflation rages and as Russia’s invasion of Ukraine adds geopolitical uncertainty.
Rates have returned to pre-pandemic levels. While it still might make sense to refinance your mortgage, the calculation has changed. Most refis now are being done by homeowners pulling out equity to pay for renovations or repairs.
Average clicked on rate for purchase loans
The average rate clicked on by Bankrate readers for 30-year purchase mortgages was 3.7 percent. At that average rate, you’ll pay $460.28 a month in principal and interest for every $100,000 you borrow.
Average clicked on rate for refinance loans
The typical rate clicked on by Bankrate readers for 30-year refinances stood at 3.48 percent Thursday.
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.