The index measures the spread in the APR of the best offers available on its website. LendingTree derives that savings claim by comparing the amount a borrower would pay out of over the life of a loan at the lowest available interest rate on its site versus the highest available interest rate.
According to the company’s data, the share of borrowers who received rates under 4.25% rose to 60.1%, with the index growing to 1.19 for the week ending July 7, 2019.
This percentage is a moderate increase from last week’s 57%, and still surpasses 2018’s rate when only 0.06% of purchase offers were under 4.25%.
The report also highlights that across all 30-year, fixed-rate purchase mortgage applications made on LendingTree’s website, 14.3% of borrowers were offered an interest rate of 4.125%, making it the most common interest rate.
When it came to 30-year fixed-rate refinance borrowers, 72.8% received offers under 4.25%, rising from 70.4% one week prior. Despite the decline, this rate is still up from 2018’s rate when 0% of refinance offers were under 4.25%.
According to the report, across all 30-year, fixed-rate refinance applications, the most common interest rate was 3.875%. This rate was offered to 18.9% of borrowers.