CHARLOTTE, N.C., June 29, 2016 /PRNewswire/ -- A new
report by LendingTree®, the nation's leading online loan
marketplace, finds that mortgage rates offered by lenders on
LendingTree's network have fallen 14 basis points since the
United Kingdom voted to leave the
European Union.
In response, LendingTree has seen a substantial increase in
refinance requests as the dramatic market reaction to Britain's exit from the EU continues to drive
down mortgage rates. Requests for purchase mortgage loans have also
increased since the Brexit news.
"This historic event has created an opportunity for US borrowers
to lock in some of the lowest interest rates we've seen since
December 2012," said Doug Lebda, founder and CEO of LendingTree.
"We're seeing 30-year fixed-rates as low as 3.21% APR, which means
there is a massive window of opportunity for borrowers to
save."
Prime and mid-prime borrowers are taking notice of the falling
interest rates. The number of total refinance requests from prime
borrowers, those with credit scores over 680, have increased more
than 100 percent week-over-week. Mid-prime borrowers, those with
credit scores between 620 and 680, have also shown interest in
capitalizing on lower rates, with requests from these borrowers
increasing well over 50 percent week-over-week.
Since January of this year, average offered interest rates have
fallen from 4.28 percent to an average of 3.73 percent following
the Brexit news. Last Thursday, June
23, 2016, average offered interest rates for a 30 year
fixed-rate mortgage were 3.84 percent. "On a $275,000 loan, a 55 basis point decline in
interest rate translates to roughly $31,500 in potential savings on payments toward
interest," said Lebda.
The chart below shows the rate movement for rates (APRs) offered
to borrowers from lenders on LendingTree's network along with the
Brexit inflection point:
Lebda continued, "For people who have been hesitant to purchase
a home or to even refinance an existing mortgage with an interest
rate in the mid to high four percent range, the opportunity to save
is there, although no one can say how long the opportunity will
last."
About LendingTree
LendingTree (NASDAQ: TREE) is the nation's leading online loan
marketplace, empowering consumers as they comparison-shop across a
full suite of loan and credit-based offerings. LendingTree
provides an online marketplace which connects consumers with
multiple lenders that compete for their business, as well as an
array of online tools and information to help consumers find the
best loan. Since inception, LendingTree has facilitated more than
55 million loan requests. LendingTree provides free monthly credit
scores through My LendingTree and access to its network of over 350
lenders offering home loans, personal loans, credit cards, student
loans, business loans, home equity loans/lines of credit, auto
loans and more. LendingTree, LLC is a subsidiary of LendingTree,
Inc. For more information go to www.lendingtree.com,
dial 800-555-TREE, like our Facebook page and/or follow
us on Twitter @LendingTree.
MEDIA CONTACT:
Megan Greuling
704-943-8208
Megan.Greuling@lendingtree.com
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SOURCE LendingTree