Today’s mortgage rates are mixed, though shorter terms have lower rates | June 15, 2023

Based on data compiled by Credible, mortgage rates for home purchases have risen for two key terms and held steady for two more since yesterday.

Rates last updated on June 15, 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 are beginning to climb back up above 6% for 15-, 20-, and 30-year terms, while rates for 10-year terms have remained stable at 5.625% for a week straight. Rates have held steady for 20-year terms, keeping the term at 6.375%. Meanwhile, rates for 15- and 30-year terms have jumped by a quarter of a percentage point to 6% and 6.625%, respectively. Borrowers interested in saving the most on interest should consider today’s lowest rate, 10-year terms at 5.625%. Homebuyers who would prefer a lower monthly payment should instead consider 20-year terms over 30-year terms, 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 risen for two key terms, fallen for another, and held steady for one more since yesterday.

Rates last updated on June 15, 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 remained stable for 20-year terms, keeping the rate at 6.375%. Meanwhile, rates for 15- and 30-year terms have climbed by a quarter of a percentage point to 5.875% and 6.5%, respectively. Additionally, rates for 10-year terms have dropped by a quarter of a percentage point to 5.625%. Mortgage refinance rates have stuck to the past week’s pattern: Rates for shorter terms have been significantly lower than those of longer terms. Homeowners looking to save the most on interest should consider 10-year terms specifically, as they have today’s lowest rate at 5.625%. Borrowers who would rather have a smaller monthly payment should instead consider 20-year terms, as their rates are 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.

How to get low mortgage rates

If you want to get the lowest possible monthly mortgage payment, taking the following steps can help you secure a lower rate on your home loan:

It’s also a good idea to compare rates from different lenders to find the best rate for your financial goals. According to research from Freddie Mac, borrowers can save $1,500 on average over the life of their loan by shopping for just one additional rate quote — and an average of $3,000 by comparing five rate quotes. 

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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