Marketplace believes there’s a chance Fed will hike rates
The wide range of mortgage rates available mean that it was possible to save a median $30,377 in lifetime interest on a $300,000 mortgage over the last week.
That’s according to the Mortgage Rate Competition Index from LendingTree which calculates the median spread between the highest and lowest APRs offered by lenders on its marketplace.
For purchase loans the index was 0.65, up from 0.01 a week earlier, meaning the lowest rate was 0.65% below the highest. There was no change in the refinance rate at 0.68.
The data shows that shopping around for the best deal results in larger savings in 2018 than in 2017; up to $27,000 from $21,000 for purchase mortgages. Refinance loan savings are up to $30,000 from $26,000.
That’s because economic data, including the advance view the Fed will have of Friday’s (expected to be strong) jobs data, has led some to comment that rate hikes need to gather pace.
However, with mortgage rates at their highest in 4 years and home sales constrained by prices and low inventory, a rise in rates would be an unwelcome move for the housing market.
