Good news: Today’s 30-year mortgage rates dip below 7% | March 6, 2023

Based on data compiled by Credible, mortgage rates for home purchases have fallen for two key terms and remained unchanged for two other terms since last Friday.

Rates last updated on March 6, 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: Rates for a 30-year mortgage fell slightly over the weekend, bringing this popular repayment term just below 7%. Meanwhile, 20-year rates also edged down, and 10- and 15-year rates held steady. Borrowers may want to consider 15-year rates today, as they’re more than half a percentage point lower than rates for a 30-year term. Mortgage rates are likely to continue to fluctuate, so buyers may want to lock in a low rate today ahead of future upswings.

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 fallen for one key term and remained unchanged for three other terms since last Friday.

Rates last updated on March 6, 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: Rates for a 30-year mortgage refinance edged down over the weekend, offering a slight savings window for homeowners who want to stick with a longer repayment term. Meanwhile, rates for all other repayment terms held steady. At 6%, 15-year mortgage refinance rates continue to offer homeowners the best opportunity for interest savings. Shorter terms do come with higher monthly payments, but they allow homeowners to be mortgage-free sooner.

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 refinance or purchase, 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 740 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.

What is a good mortgage rate?

Generally, a good mortgage rate is one that’s the lowest you can qualify for based on your individual factors, such as credit history, income, other debts, down payment amount and more.

A rate that’s good for your financial situation should result in a monthly mortgage payment that you can manage, while leaving plenty of room in your monthly budget to put toward savings, investments and an emergency fund. And a good rate should be competitive with average rates in the geographic area where you’re looking to buy.

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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