Today’s best mortgage deal? Back to 15-year terms | May 1, 2023

Based on data compiled by Credible, mortgage rates for home purchases have fallen for three key terms and risen for another since Friday.

Rates last updated on May 1, 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: While mortgage rates have edged down for 30-year terms to 6.375%, rates for 20-year terms have crept up to 6.125%. Rates for both 10- and 15-year terms have hit 5.625%, with rates for 15-year terms edging down while rates for 10-year terms have dropped by over a quarter of a percentage point. Homebuyers looking to maximize their interest savings should consider either 10- or 15-year terms, as they have today’s lowest rates. However, borrowers interested in obtaining a smaller monthly payment should consider a longer term. Those interested should consider a 20-year term over a 30-year, as their rates are a quarter of a percentage point lower.

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 three key terms and remained unchanged for another since Friday.

Rates last updated on May 1, 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 dropped across all key terms, aside from 15-year terms, which have remained steady at 5.5%. Thirty-year terms have today’s highest rate at 6.125%. Meanwhile, rates for both 10- and 20-year terms have fallen to 5.75%. Homeowners looking to refinance into a smaller monthly payment should consider 20-year terms, as their rates are over a quarter of a percentage point lower than 30-year terms. Borrowers who are instead interested in saving the most on interest should 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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