You’ve seen the headlines: With the economy in a COVID-19 tailspin, mortgage rates that have been falling and falling have now reached depths below 3% for a 30-year loan.
The national average rate dropped earlier this month to an all-time low 2.98%, according to mortgage giant Freddie Mac, which has been tracking rates since 1971. On Thursday, Mortgage News Daily reported that the average sank to an even more jaw-dropping 2.87%.
But if you’re a homeowner wanting to refinance or a homebuyer ready to make a purchase, you can’t assume that a mortgage lender will always give you one of those spectacularly low rates.
In some cities, different lenders can offer rates that vary by close to one full percentage point, a recent study from LendingTree found.
In other words, Lender X might want to give you a 30-year fixed-rate mortgage at 3.9%. But you might discover that Lender Y