Today’s best mortgage deal? Back to 15-year terms | April 28, 2023

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

Rates last updated on April 28, 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 edged up for 10-, 15-, 20-, and 30-year terms. Rates for 30-year terms have edged up to today’s highest rate of 6.49%. Meanwhile, despite rising, rates for 15-year terms are still today’s lowest at 5.75%. Rates for 20-year terms have evened out at 6%. Lastly, rates for 10-year terms rose the most today, jumping up by over a quarter of a percentage point to 5.99%. Homebuyers looking for a smaller monthly payment should consider 20-year terms over 30-year terms, as their rates are nearly a half of a percentage point lower. Borrowers who would rather maximize their savings should instead consider 15-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 April 28, 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 for 15- and 20-year terms, hitting 5.5% and 5.875%, respectively. Rates for 10-year terms rose the most today, jumping up by over a half of a percentage point to 5.875%. Rates for 30-year terms are today’s highest after rising by over a quarter of a percentage point to 6.25%. Homeowners looking to refinance into a smaller monthly payment should consider today’s lowest rate of 15-year terms at 5.5%. Borrowers who would rather have a smaller monthly payment should instead consider 20-year terms, as their rates are over a quarter of a percentage point lower than those of 30-year terms.

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.

Getting a mortgage vs. renting

If you’re wondering if you should buy a house or continue renting, no single answer is right for everyone. Whether you should buy or continue renting depends on many factors, including your personal financial situation, long-term goals, preferred lifestyle and market conditions in your area.

Buying a home does come with some distinct advantages that you can’t get from renting, including …

• You can build equity. Home equity can help you build long-term wealth.
• You can personalize your living space more than with a rental that someone else owns.
• Owning a home can provide intangible benefits like pride of ownership, a sense of community and stability.
• Your mortgage payment may be less than rents in your area.
• Mortgage interest is usually tax-deductible.

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.

Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.