What is today’s lowest mortgage rate? 15-year terms remain lowest | September 13, 2023
Longer terms for mortgage purchase rates have fallen back below the 8% range, giving borrowers a chance to lock in a lower monthly payment
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Updated October 16, 2024, 2:58 AM EDT
- 30-year fixed mortgage rates: 7.625%, down from 8.000%, -0.375
- 20-year fixed mortgage rates: 7.875%, down from 8.000%, -0.125
- 15-year fixed mortgage rates: 6.375%, up from 6.250%, +0.125
- 10-year fixed mortgage rates: 6.625%, up from 6.490%, +0.135
Rates last updated on September 13, 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: For the sixth day in a row, shorter terms for mortgage purchase rates remain in the 6% range. Rates for 10- and 15-year terms have edged up to 6.625% and 6.375%, respectively. Meanwhile, rates for 30-year terms have fallen by over a quarter of a percentage point to 7.625%, and rates for 20-year terms have also decreased, edging down to 7.875%. Borrowers interested in saving the most on interest should consider 15-year terms, as 6.375% is today’s lowest purchase rate. Homebuyers looking to instead have a lower monthly payment should consider 30-year terms, as they have the lowest rates between the two longer terms.
- 30-year fixed-rate refinance: 6.990%, unchanged
- 20-year fixed-rate refinance: 6.750%, unchanged
- 15-year fixed-rate refinance: 6.250%, up from 6.125%, +0.125
- 10-year fixed-rate refinance: 6.375%, unchanged
Rates last updated on September 13, 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: Longer terms for mortgage refinance rates have remained unchanged for the past three days. Rates for 20- and 30-year terms have held at 6.75% and 6.99%, respectively. Additionally, rates for 10-year terms have remained at 6.375%. Meanwhile, rates for 15-year terms have climbed up to 6.25%. Homeowners looking to maximize their interest savings should consider 15-year terms, as 6.25% is today’s lowest refinance rate. Borrowers who would rather have a smaller monthly payment should instead consider 20-year terms, as their rates 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%.
Can I get a mortgage with bad credit?
Credit scores are a snapshot of your credit history, and they usually range from 300 to 850. FICO, a widely used credit-scoring model, breaks down credit scores this way:
- Poor: 579 or less
- Fair: 580 to 669
- Good: 670 to 739
- Very good: 740 to 799
- Exceptional: 800 or more
To qualify for a conventional loan — one that’s not insured by any government agency — you’ll usually need a fair credit score of at least 620. But it’s possible to qualify for FHA loans, which are insured by the Federal Housing Administration, with a poor credit score as low as 500.
And Department of Veterans Affairs loans, which are for veterans, active-duty service members, and their spouses, have no minimum credit score requirements. United States Department of Agriculture loans, which help very low-income Americans buy in certain rural areas, also have no minimum credit score requirements.
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