What's today’s lowest mortgage rate? Look at today's shorter terms | September 11, 2023
Mortgage rates have either fallen or remained unchanged over the weekend, giving borrowers a chance to lock in their preferred rates without missing out on any savings
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Updated October 16, 2024, 3:03 AM EDT
- 30-year fixed mortgage rates: 7.625%, down from 8.000%, -0.375
- 20-year fixed mortgage rates: 7.875%, unchanged
- 15-year fixed mortgage rates: 6.250%, down from 6.375%, -0.125
- 10-year fixed mortgage rates: 6.250%, down from 6.750%, -0.500
Rates last updated on September 11, 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 purchase rates have fallen out of the 8% range for longer terms, while shorter terms remain in the 6% range. Today, rates for 30-year terms have dropped by more than a quarter of a percentage point to 7.625%. Rates for 10-year terms have also fallen, plummeting by a half of a percentage point to 6.25%. Additionally, rates for 15-year terms have edged down to 6.25%. Meanwhile, rates for 20-year terms have remained unchanged at 7.875%. Borrowers interested in a lower monthly payment should consider 30-year terms, as 7.625% is the lowest rate between the two longer terms. Homebuyers who would rather maximize their interest savings should instead consider either of today’s shorter terms, as 6.25% is today’s lowest rate overall.
- 30-year fixed-rate refinance: 6.990%, unchanged
- 20-year fixed-rate refinance: 6.750%, down from 6.875%, -0.125
- 15-year fixed-rate refinance: 6.125%, down from 6.250%, -0.125
- 10-year fixed-rate refinance: 6.250%, down from 6.625%, -0.375
Rates last updated on September 11, 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: For the second day in a row, all mortgage refinance rates have stayed within the 6% range. Today, rates for 30-year terms have remained the same at 6.99%. Meanwhile, rates for 15- and 20-year terms have edged down, hitting 6.125% and 6.75%, respectively. Additionally, rates for 10-year terms have dropped by over a quarter of a percentage point to 6.25%. Borrowers interested in saving the most on interest should consider 15-year terms, as 6.125% is today’s lowest refinance rate. Homeowners who would rather have a smaller monthly payment should instead consider 20-year terms, as they are nearly a quarter of a percentage point lower than those of 30-year terms.
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 700 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.
If you’re trying to find the right mortgage rate, consider using Credible. You can use Credible's free online tool to easily compare multiple lenders and see prequalified rates in just a few minutes.
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.