Today’s lowest mortgage rate? 10-year terms at 5.625% | July 14, 2023

Based on data compiled by Credible, mortgage rates for home purchases have fallen for three key terms, while one held steady since yesterday.

Rates last updated on July 14, 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 dropped into or below the 7% range for the first time in over two weeks. Today, rates for 20- and 30-year terms have edged down to 7.875% and 7.375%, respectively. Rates for 10-year terms have also fallen, dropping by a half of a percentage point to 5.625%. Meanwhile, rates for 15-year terms have held steady at 7.125%. 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 rates out of the 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 fallen across all key terms since yesterday.

Rates last updated on July 14, 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: After over two weeks, mortgage refinance rates have returned to having longer terms in the 6% range, while shorter terms have fallen back into the 5% range. Today, rates for 15- and 30-year terms have edged down to 5.75% and 6.49%, respectively. Meanwhile, rates for 20-year terms have fallen by a quarter of a percentage point to 6.25%. Rates for 10-year terms fell the most today, dropping by over a quarter of a percentage point to 5.625%. Borrowers interested in a lower 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 consider 10-year terms, as they have today’s lowest rate of 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 do I choose a mortgage lender?

A mortgage is likely the largest debt you’ll take on in life — one that will take decades to repay. So it’s critical to make sure you choose a mortgage lender and mortgage that work best for your needs and financial situation.

Here are some tips to help you choose a mortgage lender:

1. Comparison shop. Compare rates and terms from multiple lenders. Just as you comparison shop for less important purchases, you should compare offers from several lenders. A Freddie Mac study found that adding just one quote to your mortgage search could save you $1,500 over the life of a loan. Adding five could save you about $3,000. Credible makes it easy to compare your prequalified rates from multiple lenders.
2. Consider a mortgage broker. Mortgage brokers can do the legwork for you when it comes to finding a loan deal. But be aware that mortgage brokers typically make money by charging a small percentage of the loan for their services.
3. Leverage relationships. Explore mortgage offerings from banks and financial institutions you already do business with. Loyalty and familiarity may work in your favor in negotiating a good mortgage deal.
4. Look for referrals. Ask friends, family, coworkers and neighbors for referrals, and about their experiences with different lenders.

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.