Today's best mortgage deal? 15-year rates are the lowest available at 5.49% | March 17, 2023
With all key terms rising since yesterday, borrowers may want to lock in a 15-year rate ahead of further increases
Written by
Maddie is the Editorial Assistant at Credible. Her work has been featured on Zippia.
Updated October 16, 2024, 2:55 AM EDT
- 30-year fixed mortgage rates: 6.125%, up from 5.990%, +0.135
- 20-year fixed mortgage rates: 5.875%, up from 5.750%, +0.125
- 15-year fixed mortgage rates: 5.490%, up from 5.375%, +0.115
- 10-year fixed mortgage rates: 5.875%, up from 5.625%, +0.250
Rates last updated on March 17, 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 risen across all key terms today, with 30-year rates climbing back above the 6% mark. Homebuyers who want to save the most on interest may want to consider 15-year rates, which are currently the lowest available at 5.49%. But borrowers who want a smaller monthly payment may want to lock in a 20-year term while rates remain under 6%.
- 30-year fixed-rate refinance: 6.125%, up from 5.990%, +0.135
- 20-year fixed-rate refinance: 5.875%, up from 5.750%, +0.125
- 15-year fixed-rate refinance: 5.490%, up from 5.375%, +0.115
- 10-year fixed-rate refinance: 5.875%, up from 5.625%, +0.250
Rates last updated on March 17, 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: Today’s mortgage refinance rates have risen across all terms, with 10-year rates surging a quarter of a percentage point. Homeowners looking to refinance into a longer repayment term may want to consider 20-year rates, as they’re a quarter of a percentage point lower than 30-year rates.
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%.
Fixed vs. adjustable-rate mortgages: How they affect interest costs
Interest rates for fixed-rate mortgages don’t change over the life of the loan, but tend to be higher than the initial interest rate for adjustable rate mortgages, or ARMs.
Initial interest rates for ARMs are typically lower than fixed-rate mortgages. But after the end of an introductory period, your interest rate will change — and it could increase significantly. Introductory periods can vary from several months to a year or a few years. After the introductory period, your interest rate will be based on an index your lender specifies. ARMs may or may not cap how much your interest rate can increase.
Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.