Today’s mortgage rates hold steady across all terms | Jan. 4, 2023

• 30-year fixed mortgage rates: 6.375%, unchanged
• 20-year fixed mortgage rates: 6.500%, unchanged
• 15-year fixed mortgage rates: 5.875%, unchanged
• 10-year fixed mortgage rates: 5.875%, unchanged

Rates last updated on Jan. 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 rates rested across all key terms today, but rates for 30- and 20-year terms remain well over 6%. Borrowers who can manage a higher monthly payment will find greater interest savings with 15- and 10-year terms. Buyers may want to take advantage of this pause and lock in a rate ahead of future increases.

• 30-year fixed-rate refinance: 6.375%, unchanged
• 20-year fixed-rate refinance: 6.500%, unchanged
• 15-year fixed-rate refinance: 5.875%, unchanged
• 10-year fixed-rate refinance: 5.875%, unchanged

Rates last updated on Jan. 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 interest rates rested across all terms today. With 10- and 15-year rates at 5.875%, homeowners who can manage a higher monthly payment can save more on interest by refinancing to a shorter term. But with 20-year rates higher than 30-year rates, homeowners who want a longer term should stick with a 30-year refinance.

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 refinance or purchase, 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.

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How Credible mortgage rates are calculated

The rates assume a borrower has a 740 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:

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.

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