Today's best mortgage deal? Look to 20-year rates to save | March 15, 2023

• 30-year fixed mortgage rates: 6.375%, up from 6.000%, +0.375
• 20-year fixed mortgage rates: 5.875%, up from 5.750%, +0.125
• 15-year fixed mortgage rates: 5.625%, up from 5.375%, +0.250
• 10-year fixed mortgage rates: 5.875%, unchanged

Rates last updated on Mar. 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 for home purchases have risen for three key terms today, while 10-year rates held steady. Today’s 15- and 30-year rates rose by a quarter of a percentage point or more, and 20-year rates rose slightly. Homebuyers looking for a longer repayment term may want to consider 20-year rates, as they’re half a percentage point lower than rates for a 30-year term.

• 30-year fixed-rate refinance: 6.375%, up from 6.000%, +0.375
• 20-year fixed-rate refinance: 5.875%, up from 5.750%, +0.125
• 15-year fixed-rate refinance: 5.625%, up from 5.375%, +0.250
• 10-year fixed-rate refinance: 5.875%, unchanged

Rates last updated on Mar. 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: While 10-year mortgage refinance rates rested since yesterday, 15-, 20-, and 30-year rates have risen. Thirty-year rates spiked by more than a quarter of a percentage point, and 15-year rates climbed a quarter of a percentage point. Homeowners may want to consider locking in a 15-year rate, which are currently the lowest available at 5.625%.

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 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 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:

• Improving your credit score
• Paying down debt
• Making a bigger down payment

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.

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