LendingTree Introduces New Mortgage Comparison Shopping Report
"By calculating this spread and giving transparency to the range of rates offered by lenders on the
Kapfidze continued, "Data on mortgage rates is often presented as a single point value. However, the mortgage market does not work this way, and it's more informative to present mortgage rates as a distribution to represent diversity in pricing.
Mortgage Comparison Shopping Report for the week ending
Mortgage Rate Distribution
- For 30-year fixed-rate mortgages, 37.4% of purchase borrowers received offers under 5%, up from 29.4% the prior week. A year ago, 98.1% of purchase offers were under 5%.
- Across all 30-year fixed-rate mortgage purchase applications on
LendingTree, the most common interest rate was 4.875%, offered to 21.3% of borrowers.
- 27.9% of 30-year fixed-rate mortgage refinance borrowers received offers under 5%, up from 20.1% the prior week. A year ago, 98.1% of refinance offers were under 5%.
- Across all 30-year fixed-rate mortgage refinance applications, the most common interest rate was 5.00%, offered to 22.3% of borrowers.
Mortgage Rate Competition Index
- Across all 30-year fixed rate mortgage purchase applications on
LendingTreefor the week ending Nov. 25, 2018, the index was 0.59, down 0.06 from the previous week.
- How big of a deal is it to get a mortgage APR that's 0.59 percentage points lower than the competition? Over 30 years, that could translate to
$27,454in savings on a $300,000loan.
- The index was wider than the purchase market in the refinance market at 0.70, down 0.02 from the previous week. Borrowers could have saved
$32,737by shopping for the lowest rate.
- The distribution of rates — and, as a result, the Mortgage Rate Competition Index — has widened as rates increased, reflecting how mortgage lenders may change the rates at which they can offer consumers loans, depending on their unique business circumstances.
To view this week's Mortgage Comparison Shopping Report, visit https://www.lendingtree.com/home/mortgage/rates/mortgage-rate-competition-index-november-27/.
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