Based on data compiled by Credible, mortgage rates for home purchases have risen for one key term and remained unchanged for three others since yesterday.
Rates last updated on June 22, 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 begun a trend of remaining stable for 10-, 20-, and 30-year terms, while 15-year terms have been flickering between 5.75% and 5.875%. Mortgage rates have risen for 15-year terms, edging up to 5.875%. Meanwhile, rates for 10-year terms have remained at today’s lowest rate, 5.625%. Additionally, rates for 20- and 30-year terms have stayed the same at 6.125% and 6.375%, respectively. Borrowers interested in saving the most in interest should consider 10-year terms. Homebuyers who would rather have a smaller monthly payment should instead consider 20-year terms, as their rates are a quarter of a percentage point lower than those of 30-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 remained stable for three key terms and risen for another since yesterday.
Rates last updated on June 22, 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 largely remained unchanged since the beginning of the week, with 15-year terms fluctuating. Rates for 15-year terms have edged up to 5.875%. Meanwhile, rates for 20- and 30-year terms have remained at 6.375% and 6.49%, respectively. Additionally, rates for 10-year terms have remained as today’s lowest rate at 5.625%. Homeowners looking for a lower monthly payment should consider 20-year terms over 30-year terms, as 20-year terms are lower. Borrowers who would like to maximize their interest savings should instead consider 10-year terms.
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.
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.
Credit scores are a snapshot of your credit history, and they usually range from 300 to 850. FICO, a widely used credit-scoring model, breaks down credit scores this way:
To qualify for a conventional loan — one that’s not backed by any government agency — you’ll usually need a fair credit score of at least 620. But it’s possible to qualify for FHA loans, which are insured by the Federal Housing Administration, with a poor credit score as low as 500.
And Veterans Administration loans, which are for veterans, active-duty service members and their spouses, have no minimum credit score requirements. USDA loans, which help very low-income Americans buy in certain rural areas, also have no minimum credit score requirements.
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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