Today’s Mortgage & Refinance Rates: November 20, 2020
Get current mortgage rates, refinance options, and insights for November 20, 2020.
Here Are Today’s Best Mortgage & Refinance Rates for November 20, 2020
The mortgage market continues to show strength as the housing sector rebounds from pandemic-related disruptions. On November 20, 2020, the average rate for a 30-year fixed-rate purchase mortgage was 3.201%, while the average rate for a 30-year refinance mortgage reached 4.085%. These rates represent an excellent opportunity for both homebuyers and existing homeowners looking to refinance their current mortgages.
The robust mortgage market reflects broader economic trends, with existing home sales reaching an annual rate of 6.85 million units in October, marking an increase of more than 25% from the same period a year earlier. This represents the highest level since February 2006, demonstrating strong consumer confidence in the housing market despite ongoing economic uncertainty.
Today’s Mortgage Rates
Money’s mortgage rate data is compiled from over 8,000 lenders across the United States and is updated daily. These rates include discount points and represent what a borrower with a 20% down payment and a 700 credit score—roughly the national average FICO score—would typically receive. Understanding current rates is essential for prospective homebuyers planning their purchase strategy.
| Loan Type | Average Rate |
|---|---|
| 30-Year Fixed Loan | 3.201% |
| 15-Year Fixed Loan | 2.423% |
| 30-Year FHA Loan | 3.142% |
| 30-Year VA Loan | 3.244% |
| 30-Year Jumbo Loan | 3.626% |
Source: Money | Date: Nov. 19, 2020 | Rates Assume a Credit Score of 700
Understanding Loan Options
Different loan types serve different financial situations and borrower profiles. The 30-year fixed-rate mortgage remains the most popular choice for homebuyers, offering predictable monthly payments and long-term stability. The 15-year fixed-rate option provides a faster path to home ownership and typically involves lower interest rates, though monthly payments are substantially higher.
FHA loans enable buyers with lower down payments and credit scores to enter the housing market, making homeownership more accessible. VA loans offer favorable terms for military veterans and active-duty service members. Jumbo loans accommodate purchases exceeding conforming loan limits, which are typically set at $510,400 for most areas in 2020.
Geographic Variations in Mortgage Rates
Mortgage rates vary significantly from state to state based on local market conditions, economic factors, and lender competition. On November 20, 2020, borrowers in Illinois were quoted the lowest mortgage rates at 3.047%, reflecting strong competition among lenders in that market. Conversely, mortgage seekers in Nevada faced the highest average rates at 3.37%, indicating less favorable lending conditions in that state.
These geographic differences underscore the importance of shopping around with multiple lenders. Prospective homebuyers relocating or refinancing should obtain quotes from several institutions in their target state or region to ensure they receive the most competitive rate available.
Credit Score Impact on Mortgage Rates
Credit scores play a crucial role in determining the mortgage rate a borrower receives. On November 20, 2020, nationwide borrowers with the highest credit scores—740 and above—were quoted rates averaging 2.867%. This represents a significant advantage over borrowers with lower credit scores. Those with credit scores of 640 or below were shown rates of 4.61%, creating a substantial 1.743 percentage-point spread between excellent and poor credit applicants.
This credit-based rate differential demonstrates the importance of maintaining good credit health before applying for a mortgage. Even small improvements to your credit score can result in lower rates and substantial savings over the life of a 30-year loan. Prospective borrowers should review their credit reports, dispute any errors, and pay down existing debt to maximize their borrowing power.
Negotiating Better Rates
Homebuyers and refinancers should understand that published rates are not always final. You may be able to negotiate a lower rate by shopping around with multiple lenders or by maintaining other financial accounts with your chosen institution. Currently, some lenders are hiking advertised rates to manage demand, so contacting lenders directly may result in better offers than what appears in their marketing materials.
Building relationships with lenders through maintaining checking and savings accounts, credit cards, and other financial products can strengthen your negotiating position. Many institutions offer rate discounts to existing customers as an incentive to consolidate their financial relationships.
Freddie Mac Market Survey
Freddie Mac’s widely quoted Primary Mortgage Market Survey provides another important data point for understanding market trends. For the week ending November 19, Freddie Mac reported rates at 2.72% with 0.7 points paid—a 0.12 percentage-point drop from the previous week’s 2.84% and marking the 13th record low set during 2020. This survey reflects borrowers who put 20% down on conforming loans and have excellent credit, representing optimal borrowing conditions.
The consistent decline in rates throughout 2020 reflects the Federal Reserve’s efforts to support the economy during the pandemic through monetary policy. Record-low mortgage rates have driven unprecedented demand in the housing market and refinancing activity.
Today’s Refinance Rates
Homeowners looking to refinance their existing mortgages face favorable conditions with rates significantly lower than recent historical averages. Money’s survey shows that the offered rate for a 30-year refinance for someone with a 740 credit score was 3.338% on November 20, 2020. Last November, the average mortgage rate including fees was 3.874%, meaning refinancing could yield meaningful savings for many homeowners.
| Loan Type | Average Rate |
|---|---|
| 30-Year Fixed Loan | 3.338% |
| 15-Year Fixed Loan | 2.756% |
| 30-Year FHA Loan | 3.532% |
| 30-Year VA Loan | 3.585% |
| 30-Year Jumbo Loan | 3.587% |
Source: Money | Date: Nov. 19, 2020 | Rates Assume a Credit Score of 740
Refinancing Savings Potential
A homeowner with a $200,000 mortgage balance currently paying 3.874% on a 30-year mortgage could potentially cut their monthly payment from $940 to $880 by refinancing at current rates—a monthly savings of $60. Over the remaining loan term, such reductions accumulate to substantial amounts.
However, refinancing involves closing costs that must be factored into the decision. To determine if refinancing makes financial sense, consider the following factors: the closing fees you paid on your current mortgage, the fees your new lender is charging, and how much time remains on your current loan term. A general rule of thumb suggests that refinancing makes sense if the interest rate difference exceeds 0.5% to 1% and if you plan to remain in the home long enough to break even on closing costs.
Regional Housing Market Strength
The surge in home sales across all regions demonstrates robust market conditions. The Midwest led the nation with a month-over-month jump of 8.6% to an annual rate of 1,640,000 units. The Northeast followed with a 4.7% increase to an annual rate of 900,000 units. The South, the nation’s largest housing market, saw a 3.2% increase to an annual rate of 2.91 million units. The West rounded out regional gains with a 1.4% increase to an annual rate of 1,400,000 units.
These gains across all regions offset the spring market losses caused by pandemic-related disruptions. The breadth of the recovery suggests that housing demand remains strong across diverse geographic markets and demographic segments.
COVID-19’s Impact on Housing Demand
The pandemic has fundamentally altered living preferences and work patterns, creating powerful tailwinds for the housing market. Many workers have shifted to remote arrangements, increasing demand for homes with dedicated office space. Families seeking more square footage for home-based schooling and activities have expanded the pool of potential homebuyers. These preference shifts are expected to support demand into 2021 and beyond.
Mortgage Market Outlook
Industry experts remain optimistic about the housing market’s trajectory. Mortgage rates are expected to remain low throughout 2021, which will continue supporting sales activity. According to LendingTree’s chief economist Tendayi Kapfidze, “Mortgage rates should remain low, which will support sales going into 2021. Changes in living preferences due to COVID-19 are also supporting demand as many buyers shop for more space to work from home.”
As the housing market continues to demonstrate resilience despite pandemic-related economic turmoil, both prospective homebuyers and refinancing homeowners should carefully evaluate current rates and market conditions. Historic lows present a limited-time opportunity to secure favorable financing terms.
Frequently Asked Questions
Q: What factors influence mortgage rates?
A: Mortgage rates are influenced by Federal Reserve policy, the yield on 10-year Treasury securities, inflation expectations, economic data, and lender competition. Long-term rates typically move in the same direction as Treasury yields, while short-term rates respond to Fed policy decisions.
Q: How often are mortgage rates updated?
A: Mortgage rates fluctuate daily based on market conditions. Money’s rates are updated daily based on quotes from over 8,000 lenders across the United States, providing current market snapshots for comparison purposes.
Q: Is it better to refinance or stay with my current mortgage?
A: Refinancing makes sense when you can achieve a meaningful rate reduction (typically 0.5% to 1% or more) and plan to remain in the home long enough to recoup closing costs. Run the numbers with multiple lenders and consider your long-term housing plans.
Q: What credit score do I need to qualify for the best mortgage rates?
A: Credit scores of 740 and above typically qualify for the best rates. However, even with lower scores, you can obtain financing, though at higher rates. Improving your credit score before applying can significantly reduce your borrowing costs.
Q: How much down payment do I need?
A: Traditional conforming loans typically require 20% down, though FHA loans allow as little as 3.5% down, and VA loans may require no down payment. A larger down payment generally results in better interest rates and eliminates private mortgage insurance costs.
Q: Why do rates vary by state?
A: State-by-state rate variations reflect regional economic conditions, lender competition, housing market dynamics, and state-specific regulations. Shopping around with multiple lenders can help you find the best rates in your area.
References
- Today’s Mortgage & Refinance Rates for November 20, 2020 — Money. 2020-11-20. https://money.com/todays-mortgage-rates-11-20-2020/
- Mortgage Rates – Freddie Mac Primary Mortgage Market Survey — Federal Home Loan Mortgage Corporation. Updated weekly. https://www.freddiemac.com/pmms
- Current Mortgage Rates and Trends — Bankrate. 2025-11-25. https://www.bankrate.com/mortgages/mortgage-rates/
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