Rates for ‘Best Borrowers’ Up in December

LendingTree, Charlotte, N.C., said December’s best offers for borrowers with the best profiles had an average annual percentage rate of 3.80% for conforming 30-year fixed purchase loans, up from 3.75% in November.

The company’s December Mortgage Offers Report said refinance loan offers for best-profile borrowers rose by one basis point to 3.70%.

For the average borrower, purchase APRs for conforming 30-yr fixed loans offered on LendingTree’s platform rose by 12 bps to 4.42%, the highest since July 2016. The loan note rate hit the highest since March 2016 at 4.32% and rose by 14 bps from November.

LendingTree said consumers with the highest credit scores (760+) saw offered APRs of 4.26% in December, vs 4.56% for consumers with scores of 680-719. The APR spread of 30 bps between these score ranges was 3 bps wider than in November and the widest since this data series began in April 2016. The spread represented nearly $15,000 in additional costs for borrowers with lower credit scores over 30-years for the average purchase loan amount of $233,586.

The report said refinance APRs for conforming 30-year fixed loans rose by 7 bps to 4.31%. The credit score bracket spread widened to 24 from 20 bps, amounting to $12,000 in extra costs over the life of the loan for lower credit score borrowers given an average refinance loan of $241,973.

Average proposed purchase down payments have been rising for eight months and reached $63,740, LendingTree said.