Today’s best mortgage deal? Twenty-year mortgage rates plunge a quarter point | Nov. 28, 2022
At 6%, 20-year terms offer a desirable blend of a relatively low rate and smaller monthly payments
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Chris Jennings is an authority on mortgages and personal finance. His work has been featured by Fox Business, MSN, AOL, and Yahoo Finance.
Updated October 16, 2024, 2:53 AM EDT
- 30-year fixed mortgage rates: 6.490%, up from 6.250%, +0.240
- 20-year fixed mortgage rates: 6.000%, down from 6.250%, -0.250
- 15-year fixed mortgage rates: 6.000%, down from 6.125%, -0.125
- 10-year fixed mortgage rates: 6.000%, down from 6.125%, -0.125
Rates last updated on Nov. 28, 2022. 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 fell for three key terms since last Wednesday, with 20-year rates falling to 6%. Meanwhile, rates for 30-year terms edged up nearly a quarter point. With today’s rate changes, 20-year terms are buyers’ best bet for a low interest rate and manageable monthly payments. Homebuyers may want to lock in a rate today, ahead of likely fluctuations.
- 30-year fixed-rate refinance: 6.490%, up from 6.250%, +0.240
- 20-year fixed-rate refinance: 6.000%, down from 6.250%, -0.250
- 15-year fixed-rate refinance: 6.000%, down from 6.125%, -0.125
- 10-year fixed-rate refinance: 6.000%, down from 6.125%, -0.125
Rates last updated on Nov. 28, 2022. 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: Three key mortgage refinance rates fell today, with rates for 20-year terms falling a quarter point and hitting 6%. Homeowners who want to stick with a longer repayment term may want to consider 20-year rates, which are nearly half a point lower than rates for a 30-year term. Rates are likely to continue to fluctuate, meaning homeowners looking to refinance may want to lock in a low rate now ahead of future increases.
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%.
What is a good mortgage rate?
Generally, a good mortgage rate is one that’s the lowest you can qualify for based on your individual factors, such as credit history, income, other debts, down payment amount and more.
A rate that’s good for your financial situation should result in a monthly mortgage payment that you can manage, while leaving plenty of room in your monthly budget to put toward savings, investments and an emergency fund. And a good rate should be competitive with average rates in the geographic area where you’re looking to buy.
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As a Credible authority on mortgages and personal finance, Chris Jennings has covered topics that include mortgage loans, mortgage refinancing, and more. He’s been an editor and editorial assistant in the online personal finance space for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.