“We’re seeing about an eighty-four basis point difference between the average rate and lowest rates offered, the largest spread since LendingTree began tracking the data," says Doug Lebda, LendingTree's CEO. "That’s about a $125 difference in monthly mortgage payments on an average home loan, or $1,500 per year that borrowers could be saving on their mortgage payments."
Why are the spreads widening?
My guess is it's all about the credit quality, or lack thereof, of today's borrowers.
Read it allThere are just a huge number of people who are unable to qualify for super low rates, so when lenders see really qualified borrowers, perhaps they're willing to offer them a better rate because that loan is so much more desirable. A borrower with good credit will find an increasingly competitive rate landscape.