The rates on mortgage offers advertised on Bankrate.com rose in the past week. The average rate on mortgages clicked on by Bankrate readers Thursday edged up to 2.42 percent, an increase of 2 basis points from the previous Thursday. Mortgage rates remain historically low, making it a good time to get a mortgage or refinance.
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, and they’ve been hovering near all-time lows for months. The up-and-down trends reflect the unpredictability of the mortgage market as the economy continues to recover 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.
Average clicked on rate for purchase loans
The average rate clicked on by Bankrate readers for 30-year purchase mortgages fell to 2.62 percent from 2.71 percent seven days earlier. At that average rate, you’ll pay $401.39 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 fell to 2.48 percent, down from 2.52 percent the previous 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.