Mortgage rates today continued to inch downward for 30- and 15-year fixed loans while 5/1 ARMs held steady, according to a NerdWallet survey of current mortgage rates published by national lenders on Tuesday morning.
More consumers report being rejected for mortgages
Consumers are increasingly being turned down for mortgages, while a larger share of consumers is discouraged about their chances of being approved for a home loan, according to a new survey from the Federal Reserve Bank of New York.
The Survey of Consumer Expectations (SCE) Credit Access Survey, conducted every four months, examines consumers’ attitudes about various types of credit, as well as accessibility to it.
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Respondents’ experiences with mortgage applications revealed a rising rejection rate. In February, 13.3% of respondents reported having been rejected for a mortgage (up slightly from 13% in October). That is more than double the rate of February 2016, when 5.7% reported being turned down for a mortgage.
Overall, more respondents believed they’d be rejected for all types of credit (except credit card limit increases), and that’s especially true of home loans. In fact, consumers’ perceived rate of rejection for a mortgage increased from 34.2% in October to 41.4% in February — the highest level in the survey’s history, the Fed reported.
Homeowners looking to lower their mortgage rate can shop for refinance lenders here.
NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.