Best mortgage and refinancing rates of the day for October 2, 2020

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On Thursday, borrowers with 700 credit scores got an average rate of 3.454% on a 30-year fixed-rate purchase mortgage, according to Money’s daily survey of more than 8,000 lenders across the states. -United. At this credit score, roughly the national average, the rate for a 30-year refinance was 4.336%. Our rates include discount points and are intended for borrowers who pay 20% down payment.

30-year fixed rate purchase mortgage
3.454%
October 1, 2020 rate

Borrowers in Alaska were cited the lowest mortgage rates Thursday – at 3.242%. Those in Georgia registered the highest average rate at 3.685%. Nationally, borrowers with the highest credit scores, 740 and above, were rated at average rates of 3.004%, while those with credit of 640 or less received rates of 4.738%, or a difference of 1.734 percentage point.

You may be able to negotiate a lower rate if you shop around or have other accounts with the lender. (Money’s choices for the best mortgage lenders are here.) Currently, some banks are increasing advertised rates to control demand, so a lower rate may be offered if you contact directly.

Freddie Mac’s widely cited primary mortgage market survey put rates at 2.88% with 0.8 points paid for the week ending October 1. weekly The survey reflects borrowers who put 20% less on compliant loans and have excellent credit.

Refinancing rate today

Money’s survey also shows that the proposed rate for a 30-year refinance for someone with a credit score of 740 was 3.587% on Thursday. Last October, the average mortgage rate (including fees) was 3.859%.

30 year fixed rate mortgage refi
3.587%
October 1, 2020 rate

A homeowner with a mortgage balance of $ 200,000 who currently pays 3.859% on a 30-year loan could potentially reduce their monthly payment from $ 939 to $ 908 by financing at today’s lowest rates. Determine if it’s worth refinancing your mortgage, also consider the closing costs you paid on your current mortgage, the amount charged by your new lender, and the remaining term of your loan. (Our choices for the best lenders for refinancing are here).

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What else is happening in the housing market right now?

Sign that the economic recovery could slow down, according to the Ministry of Labour, the labor market added 661,000 to non-farm payrolls in September, well below the 800,000 expected by economists. The gains were led by an increase of 318,000 in leisure and hospitality, followed by retail (142,000) and health care and social assistance (102,000).

The unemployment rate fell 0.5 percentage points to 7.9% while the number of unemployed fell from 1 million to 12.6 million. Although both numbers have declined over the past five months, they remain well above February’s total, indicating that there is still a long way to go before a full recovery can be achieved. The unemployment rate is 4.4% higher than in February, while the number of unemployed is 6.8 million higher.

“The economic recovery is showing signs of slowing down as many programs that act as safety nets, such as the increased unemployment benefit of $ 600 per week, are short of funds. In turn, personal income fell 2.7% in August, slowing consumer spending as the summer wears off, ”said George Ratiu, senior economist at Realtor.com. “Employment trends are creating a wedge between consumers who are still employed and those who are unemployed. likely to keep demand strong, as many buyers who still have their jobs are looking. However, with the growth in house prices more than doubling the growth of wages, many buyers will struggle to be affordable. “

A total of 12 million jobs have been recovered since mid-March, when COVID-related closures resulted in the loss of 22 million jobs.

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At the end of the line :

Mortgage rates vary from state to state. Here’s how to get the best deal if you’re moving

Procrastinators, it’s not too late to refinance your mortgage and save thousands

Everyone wants to buy a house now. 9 experts predict how long demand will skyrocket