Today's lowest mortgage rate? 10-year terms at 6.125% | August 3, 2023
Borrowers should act fast to lock in their preferred rate ahead of likely future increases
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Updated October 16, 2024, 2:57 AM EDT
- 30-year fixed mortgage rates: 8.000%, unchanged
- 20-year fixed mortgage rates: 8.000%, unchanged
- 15-year fixed mortgage rates: 6.250%, up from 6.125%, +0.125
- 10-year fixed mortgage rates: 6.125%, up from 6.000%, +0.125
Rates last updated on August 3, 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 purchase rates have started a new pattern of longer terms staying in the 8% range, while shorter terms hold within the 6% range. Today, rates for both 20- and 30-year terms have held steady at 8%. Meanwhile, rates for 10- and 15-year terms have edged up, hitting 6.125% and 6.25%, respectively. Borrowers interested in a smaller monthly payment should consider either of today’s longer terms. Homebuyers who would rather maximize their interest savings should instead consider 10-year terms, as they have today’s lowest rate.
- 30-year fixed-rate refinance: 6.875%, unchanged
- 20-year fixed-rate refinance: 6.750%, up from 6.625%, +0.125
- 15-year fixed-rate refinance: 6.125%, up from 6.000%, +0.125
- 10-year fixed-rate refinance: 6.125%, unchanged
Rates last updated on August 3, 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 are currently within the 6% range across all terms. Today, 10- and 30-year terms have held steady, remaining at 6.125% and 6.875%, respectively. Meanwhile, rates for 15- and 20-year terms have edged up, hitting 6.125% and 6.75%, respectively. Homebuyers interested in saving the most on interest should consider today’s lowest rate, 10-year terms at 6.125%. Borrowers who would rather refinance into a lower 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
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%.
Can I get a mortgage with bad credit?
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:
- Poor: 579 or less
- Fair: 580 to 669
- Good: 670 to 739
- Very good: 740 to 799
- Exceptional: 800 or more
To qualify for a conventional loan — one that’s not insured 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 Department of Veterans Affairs loans, which are for veterans, active-duty service members, and their spouses, have no minimum credit score requirements. United States Department of Agriculture loans, which help very low-income Americans buy in certain rural areas, also have no minimum credit score requirements.
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