Looking for today's lowest mortgage rate? Try 15-year terms | August 4, 2023
Check out the mortgage rates for August 4, 2023, which are largely trending up from yesterday.
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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: 8.125%, up from 8.000%, +0.125
- 15-year fixed mortgage rates: 6.375%, up from 6.250%, +0.125
- 10-year fixed mortgage rates: 6.625%, up from 6.125%, +0.500
Rates last updated on August 4, 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 maintained a pattern of longer terms staying within the 8% range, while shorter terms stay within the 6% range. Today, rates for 15- and 20-year terms have edged up to 6.375% and 8.125%, respectively. Additionally, rates for 10-year terms have surged by a half of a percentage point to 6.625%. Meanwhile, rates for 30-year terms have remained at 8%. Homebuyers interested in maximizing their interest savings should consider today’s lowest rate, 15-year terms at 6.375%. Borrowers who would rather have a smaller monthly payment should instead consider 30-year terms.
- 30-year fixed-rate refinance: 6.990%, up from 6.875%, +0.115
- 20-year fixed-rate refinance: 6.990%, up from 6.750%, +0.240
- 15-year fixed-rate refinance: 6.250%, up from 6.125%, +0.125
- 10-year fixed-rate refinance: 6.500%, up from 6.125%, +0.375
Rates last updated on August 4, 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 continue to remain in the 6% range. Today, rates for 15- and 30-year terms have edged up, hitting 6.25% and 6.99%, respectively. Meanwhile, rates for 20-year terms have jumped by nearly a quarter of a percentage point to 6.99%. Additionally, rates for 10-year terms have increased by over a quarter of a percentage point to 6.5%. Borrowers interested in saving the most on interest should consider today’s lowest rate, 15-year terms at 6.25%. Homeowners who would rather refinance into a smaller monthly payment should instead consider either of today’s longer 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%.
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:
- 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.
- 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.
- 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.
- Look for referrals. Ask friends, family, coworkers, and neighbors for referrals, and about their experiences with different lenders.
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