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Mortgages

Mortgage Rates

Here Are Today's Best Mortgage & Refinance Rates for June 18, 2020

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Mortgage rates dropped to a new all-time low last week, providing homeowners new reason to consider refinancing and buyers even more incentive to start shopping.

"Purchase demand activity is up over 20% from a year ago, the highest since January 2009. Mortgage rates have hit another record low due to declining inflationary pressures, putting many homebuyers in the buying mood," said Sam Khater, chief economist for Freddie Mac.

Mortgage applications for the week ending June 12 increased 8% from the previous week and were 21% higher than a year ago, according to data released Wednesday by the Mortgage Bankers Association.

Refinance applications led the upswing, increasing 10% over the previous week and just about doubling the number of applications filed in the same week last year. Refinance loans made up 63% of all loan applications, up from 61% last week.

On Wednesday, the U.S. Census Bureau also released data on new housing starts, building completions, and construction permits for May. The report indicated a slight increase in all three categories compared to April, which could be a sign that pressure from historically low supply may ease somewhat in the coming months.

Average Mortgage Rates Today

The average interest rate for a 30-year fixed-rate mortgage dropped to 3.13% with 0.8 points paid for the week ending June 18, according to Freddie Mac. That's 0.02 percentage points below the previous all-time low of 3.15% set May 28.

According to Freddie Mac, the average rate for a 15-year fixed-rate mortgage was 2.58% with 0.8 points paid, down 0.04 percentage points from last week, while the average rate on a 5-year adjustable-rate mortgage also decreased slightly to 3.09% with 0.4 points paid.

Average Refinance Rates Today

A year ago the average rate was 3.84%. A homeowner with a $250,000 mortgage balance paying 3.84% on a 30-year loan could cut their monthly payment from $1,170 to $1,071 by financing at today’s lower rates. (It is important to note that refinancing involves closing fees and will reset the clock on your mortgage, meaning you will have to make payments longer.)

Today’s Mortgage Rates

Of course, mortgage rates vary widely by location and personal factors like the type of property you plan to buy, the size of your down payment, and your credit score. Here are today’s advertised mortgage rates at some of the mortgage industry’s largest lenders.