Buyers, get moving: Today's 30-year mortgage rates dive below 6% | March 16, 2023

• 30-year fixed mortgage rates: 5.990%, down from 6.375%, -0.385
• 20-year fixed mortgage rates: 5.750%, down from 5.875%, -0.125
• 15-year fixed mortgage rates: 5.375%, down from 5.625%, -0.250
• 10-year fixed mortgage rates: 5.625%, down from 5.875%, -0.250

Rates last updated on March 16, 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 fallen across the board, with 30-year rates plunging more than a quarter of a percentage point to hit 5.99%. With rates for all key terms under 6%, borrowers may want to lock in a rate today, ahead of likely rate fluctuations.

• 30-year fixed-rate refinance: 5.990%, down from 6.375%, -0.385
• 20-year fixed-rate refinance: 5.750%, down from 5.875%, -0.125
• 15-year fixed-rate refinance: 5.375%, down from 5.625%, -0.250
• 10-year fixed-rate refinance: 5.625%, down from 5.875%, -0.250

Rates last updated on March 16, 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 fallen across all key terms today, with 10-, 15-, and 30-year rates dropping by a quarter of a percentage point or more. Homeowners who can manage a larger monthly payment may want to consider 15-year rates, which are currently the lowest available at 5.375%.

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 much can I borrow for a mortgage?

It’s critical to have an idea of how much you can afford to borrow for a mortgage before you begin home shopping or make an offer on a house.

Generally, the 28/36 rule is a good measure of how much you can afford to borrow without strapping your finances. The rule states that your mortgage payment, including taxes and insurance, shouldn’t be more than 28% of your gross monthly income. And all your debts, including your mortgage and other monthly expenses like car and student loan payments, shouldn’t exceed 36% of your gross monthly income.

For example, if your gross monthly income is $6,250 (annual salary of $75,000), you should be able to afford a monthly payment of $1,750. And your total monthly debt load shouldn’t exceed $2,250.

A general rule of thumb is that you shouldn’t take out a mortgage that’s two to two and half times your gross annual income. So in the above scenario, the maximum you should borrow to buy a house would be $187,500.

Ultimately, lenders determine how much you can afford to borrow by weighing your income, debt, assets, credit, and other financial factors.

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