The average rate for mortgage offers clicked on by Bankrate readers Thursday was 4.50 percent, a retreat from last week. Mortgage rates are trending higher overall, so it remains important to shop around if you want to find a good deal for either a new mortgage or refinance.
The best 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. Many of the lowest rates posted on Bankrate.com also include discount points, a way of buying down the rate by paying more at closing.
Rates for mortgages change constantly, and they’ve recently risen sharply. 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, inflation rages and Russia’s invasion of Ukraine adds geopolitical uncertainty.
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 5.17 percent on Thursday. At that average rate, you’ll pay $547 each 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 5.05 percent Thursday.
You can use Bankrate’s mortgage payment calculator to estimate your monthly payments and see the effect of making extra payments. The tool can also help you determine how much interest you’ll pay over the life of the loan.