Today’s lowest mortgage rates remain 10-year terms at 5.625% | July 17, 2023

Based on data compiled by Credible, mortgage rates for home purchases have risen for two key terms, while two others have remained unchanged since Friday.

Rates last updated on July 17, 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: Overall, mortgage rates have returned to a long pattern of maintaining unchanged 10-year terms, though now at a lower rate. Mortgage rates have risen for 30-year terms, edging up to 7.5%. Rates for 20-year terms have also risen, jumping up by a quarter of a percentage point to 8.125%. Meanwhile, rates for 10- and 15-year terms have remained unchanged at 5.625% and 7.125%, respectively. Borrowers interested in saving the most on interest should consider 10-year terms, as 5.625% is today’s lowest rate. Homebuyers who would rather have a smaller monthly payment should instead consider 30-year terms, as they have the lowest rate out of the two longer 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 remained unchanged for two key terms, while two others have risen since Friday.

Rates last updated on July 17, 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 refinancing rates have maintained their pattern of keeping longer terms above 6%, while shorter terms stay within the 5% range. Today, rates for 20- and 30-year terms have edged up, hitting 6.375% and 6.625%, respectively. Meanwhile, rates for 10- and 15-year terms have remained unchanged at 5.625% and 5.75%, respectively. Homebuyers looking for a lower monthly payment should consider 20-year terms, as they are a quarter of a percentage point lower than those of 30-year terms. Borrowers who would rather maximize their interest savings should instead consider today’s lowest rate, 10-year terms at 5.625%. 

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.

How my credit score affects my rate

Many factors can affect the interest rate you receive on a mortgage. Your credit score is an important one.

A higher credit score indicates to lenders that you know how to use credit responsibly. It can boost their confidence that you’ll make your mortgage payments on time and won’t default. Applying for a mortgage with a high credit score could help you qualify for lower interest rates, and give you a wider array of loan types to choose from.

Conversely, a low credit score may make lenders think you’ll have difficulty managing your mortgage, and may miss payments or even go into foreclosure. A low credit score likely means you’ll qualify for higher interest rates, and your loan choices will be more limited.

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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