US purchase mortgage rates sit below refinance rates for fixed loans
Zillow data put national average purchase rates at 6.67% for 30-year fixed loans, 6.04% for 15-year loans and 6.64% for 5/1 adjustable-rate mortgages on 7 September.
US purchase mortgage rates were below refinance rates for both major fixed-rate products on Monday, according to data from Zillow’s lender marketplace.
The national average purchase rate for a 30-year fixed mortgage was 6.67%, or 6 basis points below the corresponding refinance rate. The 15-year fixed purchase rate was 6.04%, 7 basis points below its refinance counterpart.
The pattern was different for adjustable-rate mortgages. The purchase rate for a 5/1 ARM was 6.64%, 14 basis points above the equivalent refinance rate. Under a 5/1 structure, the rate is typically fixed for five years before adjusting annually.
Zillow’s figures are national averages rounded to the nearest hundredth and may vary by lender, location, borrower credit profile and methodology. The marketplace reports rates daily, while other measures, including Freddie Mac’s, use different data and timeframes.
The figures do not establish whether refinancing would be beneficial for an individual borrower. Any decision would depend on factors including closing costs, loan terms and personal circumstances.
