Savings window opens: 30-year mortgage rates tumble to 7% | Oct. 24, 2022
With 10- and 15-year rates half a point lower than rates for longer terms, borrowers who want to minimize their interest costs should consider shorter repayment terms.
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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-rate refinance: 7.000%, down from 7.250%, -0.250
- 20-year fixed-rate refinance: 7.125%, down from 7.375%, -0.250
- 15-year fixed-rate refinance: 6.500%, up from 6.490%, +0.010
- 10-year fixed-rate refinance: 6.500%, up from 6.490%, +0.010
Rates last updated on Oct. 24, 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: Rates for 30-year refinance terms fell a quarter point today, bringing rates for this popular repayment term back down to 7%. Meanwhile, rates for 20-year terms also fell, and 10- and 15-year rates edged slightly up. With longer terms at or just over 7%, homeowners looking to refinance may want to consider shorter terms for greater interest savings, ahead of likely increases.
Today’s mortgage rates for home purchases
- 30-year fixed mortgage rates: 7.000%, down from 7.250%, -0.250
- 20-year fixed mortgage rates: 7.125%, down from 7.375%, -0.250
- 15-year fixed mortgage rates: 6.500%, up from 6.490%, +0.010
- 10-year fixed mortgage rates: 6.500%, up from 6.490%, +0.010
Rates last updated on Oct. 24, 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 30-year terms fell today, giving buyers an opportunity to save on interest. But rates for longer terms, which tend to be the most popular, remain at or just over 7%. With rates for 10- and 15-year loans half a percentage point lower than rates for longer terms, borrowers who can manage a higher monthly payment stand to realize the most interest savings with a shorter-term mortgage. But with 20-year rates sticking higher than 30-year rates, buyers who want a longer repayment term should stick with a 30-year mortgage.
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%.
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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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.