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% slid to 56.8%, with the index falling to 0.99 for the week ending July 14, 2019.
This percentage is a moderately down from last week’s 60.1%, but still surpasses 2018’s rate when only 0.07% of purchase offers were under 4.25%.
The report also notes that across all 30-year, fixed-rate purchase mortgage applications made on LendingTree’s website, 15.4% of borrowers were offered an interest rate of 4%, making it the most common interest rate.
When it came to 30-year fixed-rate, refinance borrowers, 70.6% received offers under 4.25%, sliding from 72.8% one week prior. Nevertheless, 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 4%. This rate was offered to 17.95% of borrowers.
This image highlights the distribution of interest rates: