This week, LendingTree released its monthly Mortgage Offers Report.
The May report contains data from actual mortgage loan terms offered to borrowers on LendingTree.com by lenders, and its purpose is to empower consumers by providing additional information on how their credit profile affects their loan prospects.
Below are the key findings, and the full report can be found here.
May’s best rate offers for borrowers with the best credit profiles had an average APR of 4.35% for conforming 30-year fixed purchase loans, up from 4.26% in April. People with the best credit profiles are those who received the best mortgage offers through the LendingTree platform.
Refinance loan offers for borrowers with the best profiles were up 12 bps to 4.35%. Mortgage rates vary dependent upon parameters including credit score, loan-to-value, income and property type.
For the average borrower, purchase APRs for conforming 30-year fixed loans offered on LendingTree’s platform were up 10 bps to 5.02%. The loan note rate of 4.91% was also up 10 bps.
Consumers with the highest credit scores (760+) saw offered APRs of 4.89% in March, vs 5.17% for consumers with scores of 680 to 719.
The APR spread of 28 bps between these score ranges was down 1 bps from March, yet still near the widest since this data series began in March 2016. The spread represents almost $15,000 in additional costs for borrowers with lower credit scores over 30 years for the average purchase loan amount of $236,697. The additional costs are due to higher interest rates, larger fees or a combination of the two.
Refinance APRs for conforming 30-year fixed loans were up 11 bps to 5.00%. The credit score bracket spread narrowed 1 bps to 23 bps, amounting to just over $12,000 in extra costs over the life of the loan for lower credit score borrowers given an average refinance loan of $239,665.
Average proposed purchase down payments were up more than $2,000 month-over-month at $60,009.