Today’s best mortgage deal? 15-year terms are still below 6% | May 9, 2023

Based on data compiled by Credible, mortgage rates for home purchases have risen across all key terms since yesterday.

Rates last updated on May 9, 2023. These rates are based on the assumptions shown here. Actual rates may vary. Credible, a personal finance marketplace, has 5,000 Trustpilot reviews with an average star rating of 4.7 (out of a possible 5.0).

What this means: Mortgage rates have increased across all terms. Rates for both 10- and 20-year terms jumped up by a quarter of a percentage point, hitting 5.875% and 6.375%, respectively. Rates for 30-year terms increased the most today, climbing over a quarter of a percentage point to 6.5%. Rates for 15-year terms rose the least today, edging up to 5.625%. Homebuyers looking to maximize their interest savings should consider today’s lowest rate, 15-year terms. Borrowers who would rather have a smaller monthly payment should instead consider 20-year terms, as their rates are lower than those of 30-year terms.

To find great mortgage rates, start by using Credible’s secured website, which can show you current mortgage rates from multiple lenders without affecting your credit score. You can also use Credible’s mortgage calculator to estimate your monthly mortgage payments.

Based on data compiled by Credible, mortgage refinance rates have risen across all key terms since yesterday.

Rates last updated on May 9, 2023. These rates are based on the assumptions shown here. Actual rates may vary. With 5,000 reviews, Credible maintains an “excellent” Trustpilot score.

What this means: Mortgage refinance rates have edged up across all key terms. Rates for 30-year terms are today’s highest at 6.125%. Meanwhile, rates for 15-year terms are today’s lowest at 5.5%. Rates for 20-year terms increased to 5.875%, while rates for 10-year terms hit 5.75%. Borrowers looking to refinance into a smaller monthly payment should consider 20-year terms, as their rates are a quarter of a percentage point lower than those of 30-year terms. Homeowners who would rather maximize their interest savings should instead consider today’s lowest rate, 15-year terms at 5.5%.

How mortgage rates have changed over time

Today’s mortgage interest rates are well below the highest annual average rate recorded by Freddie Mac — 16.63% in 1981. A year before the COVID-19 pandemic upended economies across the world, the average interest rate for a 30-year fixed-rate mortgage for 2019 was 3.94%. The average rate for 2021 was 2.96%, the lowest annual average in 30 years.

The historic drop in interest rates means homeowners who have mortgages from 2019 and older could potentially realize significant interest savings by refinancing with one of today’s lower interest rates. When considering a mortgage or refinance, it’s important to take into account closing costs such as appraisal, application, origination and attorney’s fees. These factors, in addition to the interest rate and loan amount, all contribute to the cost of a mortgage. 

How Credible mortgage rates are calculated

Changing economic conditions, central bank policy decisions, investor sentiment and other factors influence the movement of mortgage rates. Credible average mortgage rates and mortgage refinance rates reported in this article are calculated based on information provided by partner lenders who pay compensation to Credible.

The rates assume a borrower has a 700 credit score and is borrowing a conventional loan for a single-family home that will be their primary residence. The rates also assume no (or very low) discount points and a down payment of 20%.

Credible mortgage rates reported here will only give you an idea of current average rates. The rate you actually receive can vary based on a number of factors.

Fixed vs. adjustable-rate mortgages: How they affect interest costs

Interest rates for fixed-rate mortgages don’t change over the life of the loan, but tend to be higher than the initial interest rate for adjustable rate mortgages, or ARMs. 

Initial interest rates for ARMs are typically lower than fixed-rate mortgages. But after the end of an introductory period, your interest rate will change — and it could increase significantly. Introductory periods can vary from several months to a year or a few years. After the introductory period, your interest rate will be based on an index your lender specifies. ARMs may or may not cap how much your interest rate can increase.

If you’re trying to find the right mortgage rate, consider using Credible. You can use Credible’s free online tool to easily compare multiple lenders and see prequalified rates in just a few minutes.

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