Savings window opens: Today's 30-year mortgage rates dive to 6.125% | March 22, 2023

• 30-year fixed mortgage rates: 6.125%, down from 6.490%, -0.365
• 20-year fixed mortgage rates: 5.875%, down from 6.125%, -0.250
• 15-year fixed mortgage rates: 5.625%, up from 5.375%, +0.250
• 10-year fixed mortgage rates: 5.750%, up from 5.625%, +0.125

Rates last updated on March 22, 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 plunged for 20- and 30-year terms today, giving borrowers seeking a longer repayment term an opportunity to save on interest. Meanwhile, 10- and 15-year rates edged up. Homebuyers looking for a longer repayment term may want to lock in a 20-year mortgage while rates are 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: 5.375%, unchanged
• 10-year fixed-rate refinance: 5.750%, up from 5.625%, +0.125

Rates last updated on March 22, 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 edged up since yesterday for 10-, 20-, and 30-year terms, while 15-year rates held steady. Homeowners who want to take advantage of maximum interest savings may want to consider 15-year rates, which are the lowest available at 5.375%. But homeowners looking for a smaller monthly mortgage payment should stick with 20-year rates, as they’re a quarter of a percentage point lower than rates for 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 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%.

Why do mortgage rates fluctuate?

Here are some of the most common reasons why mortgage rates move frequently:

Employment patterns

The employment rate is an indicator of demand for mortgages. When more people are unemployed, fewer people will be looking to get a mortgage and buy a home — and that lower demand will push interest rates down. When the employment rate improves, demand for mortgages will likely keep pace. And as demand for mortgages rises, so will mortgage interest rates.

The bond market

Because bonds are a lower-risk type of investment, demand for bonds can increase when investors are wary of other investment vehicles, or fearful of the overall state of the economy. Increased demand for bonds causes their price to rise and their earnings — called their yield — to fall.

When bond yields fall, consumer interest rates generally do as well, including mortgage interest rates. When investors feel more confident about the economy, demand for bonds declines, bond prices drop and yields rise. And interest rates tend to follow.

Federal Reserve System

"The Fed," as it’s commonly called, is the United States’ central bank. But it doesn’t actually set mortgage rates. Rather, multiple things the Fed does influence mortgage rates. For example, while mortgage rates don’t mirror the Fed funds rate — the rate banks apply when borrowing lending money to each other overnight — they do tend to follow it. If that rate rises, mortgage rates typically rise in tandem.

Global economy

Global banking systems and economies are closely interconnected. When economies in other parts of the world — especially Europe and Asia — experience a downturn, it affects investors and financial institutions in the United States. And, when foreign economies are doing well, they may attract more American investors — and divert those investment dollars out of the U.S. economy.

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