When you're comparison-shopping for a new loan and spot a mortgage rate that could save you a pile of money, lock that rate and don't let it get away.

Mortgage rates are flat, near their all-time low

Home and money bag put on the scales with balance put on the wood in the public park, Saving for buy a new house or real estate and loan for plan business investment in the future concept.
Watchara Ritjan / Shutterstock
Mortgage rates are steady this week.

Mortgage rates are unchanged this week with rates on popular 30-year fixed-rate mortgages still averaging 3.33%, mortgage giant Freddie Mac reported on Thursday. That's not too far above 3.29%, the record low reached last month in Freddie Mac's weekly survey that dating back to 1971.

The survey rates come with an average 0.7 point. Last year at this time, the typical rate on a 30-year fixed mortgage was 4.12%.

The benchmark mortgage rate shot as high as an average 3.65% in mid-March before dropping back again. Rates are likely to stay down going forward, says Sam Khater, the chief economist at Freddie Mac.

"This year the 10-year Treasury market has declined by over a full percentage point, yet mortgage rates have only declined by one-third of a point. As financial markets continue to heal, we expect mortgage rates will drift lower in the second half of 2020," Khater says.

Mortgage rates closely track the yields, or interest, on 10-year Treasury notes. The yields have been sinking and bond prices have been rising while the Federal Reserve buys up bonds to help stabilize the economy in the face of the coronavirus crisis.

The Fed also slashed an influential short-term interest rate to near zero last month, which has created an environment for low interest rates, including mortgage rates.

Current average mortgage rates

Loan Type Interest Rate
30-year fixed-rate mortgage 3.26%
15-year fixed-rate mortgage 2.73%
5/1 adjustable-rate mortgage 3.17%
Source: Freddie Mac Primary Mortgage Market Survey, May 7, 2020.

Veterans: $0 Down, no PMI and lower monthly payments. Get started with Veterans United Home Loans.

Homeowners hold back on refinancing

Young boy standing on the end of a diving board at a swimming pool - seems to be a little apprehension
Mike Flippo / Shutterstock

Despite current mortgage rates that at one time may have seemed impossibly low, the mortgage refinance blitz has slowed.

Homeowners are holding back on refinancing, even though research has shown they often can lower their monthly house payments by hundreds of dollars by moving into a new loan at one of today's ultra-cheap mortgage rates.

LendingTree recently estimated that a homeowner who refinances a mortgage taken out just last year can save $60 a month for every $100,000 borrowed.

“A mortgage refinance, particularly at these historically low rates, presents an attractive opportunity for homeowners,” says Tendayi Kapfidze, LendingTree’s chief economist.

But refinance applications fell 19% last week after surging 26% a week earlier, according to the latest report from the Mortgage Bankers Association.

During these unsettled times, the trade group says we're likely to keep seeing "swings" in refinancing.

Considering a refinance? Don't dawdle. Use the mortgage calculator below to see how much you might save with one of today's low mortgage rates.

Other mortgage rates this week

Nice and comfortable neighborhood. Houses in the suburbs of Vancouver. Canada.
romakoma / Shutterstock
Other mortgage rates are mixed this week.

Rates on other popular types of mortgage loans are little changed.

The average for a 15-year fixed-rate mortgage has slipped this week to 2.77%, according to Freddie Mac. Last week, the typical rate for those loans — which are a popular refinancing option — was 2.82%. At this time in 2019, 15-year fixed home loans were averaging 3.60%.

Rates on 5/1 adjustable-rate mortgages have gone up for a third week in a row. "ARMs" are fixed for five years and then can adjust up or down each year.

ARMs are currently being offered at an initial rate of 3.40%, same as last week. One year ago, the starter rates for those loans were averaging 3.80%.

About the Author

Doug Whiteman

Doug Whiteman


Doug Whiteman is the editor-in-chief of MoneyWise. He has been quoted by The Wall Street Journal, USA Today and CNBC.com and has been interviewed on Fox Business, CBS Radio and the syndicated TV show "First Business."

You May Also Like

Take a Break From Your Debt This Month

Let debt consolidation give you a break.

If You Owe $25K+ in Student Loans, This Site Could Help You Pay Them Off Faster

If student loan debt is dragging you down, this company can help.

How to Prepare If Obamacare Gets Canceled

Be ready if President Trump's Supreme Court pick helps end the health care law.

Will Mortgage Rates Move Higher or Lower to End the Year?

Mortgage rates and home sales are likely to stay interesting in the fourth quarter.