What is today’s lowest mortgage rate? Consider shorter terms | September 15, 2023
As mortgage rates continue to fluctuate, borrowers should consider locking in their preferred rate ahead of likely future increases
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Updated October 16, 2024, 2:58 AM EDT
- 30-year fixed mortgage rates: 7.625%, up from 7.500%, +0.125
- 20-year fixed mortgage rates: 7.875%, unchanged
- 15-year fixed mortgage rates: 7.125%, unchanged
- 10-year fixed mortgage rates: 6.500%, up from 6.250%, +0.250
Rates last updated on September 15, 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 nearly a month and a half, mortgage purchase rates for 10-year terms have stayed in the 6% range. Today, rates for 30-year terms have edged up to 7.625%. Rates for 10-year terms also saw an increase, rising by a quarter of a percentage point to 6.5%. Meanwhile, rates for 15- and 20-year terms have remained unchanged, staying at 7.125% and 7.875%, respectively. Borrowers interested in saving the most on interest should consider 10-year terms, as 6.5% is today’s lowest purchase rate. Homebuyers who would rather have a lower monthly payment should instead consider 30-year terms, as their rates are a quarter of a percentage point lower than those of 20-year terms.
- 30-year fixed-rate refinance: 6.990%, down from 7.000%, -0.010
- 20-year fixed-rate refinance: 6.625%, down from 6.875%, -0.250
- 15-year fixed-rate refinance: 6.125%, down from 6.375%, -0.250
- 10-year fixed-rate refinance: 6.375%, down from 6.625%, -0.250
Rates last updated on September 15, 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: With 30-year terms edging down, all key mortgage refinance rates have returned to the 6% range. Rates for 10-, 15-, and 20-year terms have remained in the 6% range for the past six days. Today, rates for 10- and 15-year terms have fallen by a quarter of a percentage point, hitting 6.375% and 6.125%, respectively. Additionally, rates for 20-year terms have also fallen by a quarter of a percentage point, reaching 6.625%. Homeowners looking to refinance into a smaller monthly payment should consider 20-year terms, as their rates are a quarter of a percentage point lower than those of 30-year terms. Borrowers who would rather maximize their interest rates should instead consider today’s lowest refinance rate, 15-year terms at 6.125%.
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%.
Getting a mortgage vs. renting
If you’re wondering if you should buy a house or continue renting, no single answer is right for everyone. Whether you should buy or continue renting depends on many factors, including your personal financial situation, long-term goals, preferred lifestyle, and market conditions in your area.
Buying a home does come with some distinct advantages that you can’t get from renting, including ...
- You can build equity. Home equity can help you build long-term wealth.
- You can personalize your living space more than with a rental that someone else owns.
- Owning a home can provide intangible benefits like pride of ownership, a sense of community, and stability.
- Your mortgage payment may be less than rents in your area.
- Mortgage interest is usually tax deductible.
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