Today’s 20-year mortgage rates offer best money-saving opportunity | Dec. 29, 2022

Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as "Credible" below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders who compensate us for our services, all opinions are our own.

Check out the mortgage rates for December 29, 2022, which are up from Wednesday. (Credible)

Based on data compiled by Credible, mortgage rates for home purchases have risen for three key terms and remained unchanged for one term since yesterday.

30-year fixed mortgage rates: 6.625%, unchanged
20-year fixed mortgage rates: 6.125%, up from 6.000%, +0.125
15-year fixed mortgage rates: 6.250%, up from 5.875%, +0.375
10-year fixed mortgage rates: 5.990%, up from 5.875%, +0.115

Rates last updated on Dec. 29, 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: Rates for a 30-year mortgage held steady today, while rates for all other repayment terms edged up. Rates for 10- and 20-year terms rose slightly, while rates for 15-year terms rose more than a quarter point. With today’s increases, borrowers who want a longer repayment term may want to consider 20-year terms. At 6.125%, a 20-year mortgage offers the combination of a relatively low interest rate and manageable monthly payments.

To find great mortgage rates, start by using Credible’s secured website, which can show you current mortgage rates from multiple lenders without affecting your credit score. You can also use Credible’s mortgage calculator to estimate your monthly mortgage payments.

Based on data compiled by Credible, mortgage refinance rates have risen for three key terms and remained unchanged for one term since yesterday.

30-year fixed-rate refinance: 6.625%, unchanged
20-year fixed-rate refinance: 6.125%, up from 6.000%, +0.125
15-year fixed-rate refinance: 6.250%, up from 5.875%, +0.375
10-year fixed-rate refinance: 5.990%, up from 5.875%, +0.115

Rates last updated on Dec. 29, 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: Mortgage refinance rates rose for three key repayment terms today, while 30-year rates held steady. Homeowners stand to save the most on interest with 10-year rates, which are currently the lowest available at 5.99%. A 10-year refinance comes with a larger monthly payment, but allows homeowners to pay off their mortgage sooner.

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.

Are you looking to buy a home? Credible can help you compare current rates from multiple mortgage lenders at once in just a few minutes. Use Credible’s online tools to compare rates and get prequalified today.

Thousands of Trustpilot reviewers rate Credible "excellent."

How Credible mortgage rates are calculated

Changing economic conditions, central bank policy decisions, investor sentiment and other factors influence the movement of mortgage rates. Credible average mortgage rates and mortgage refinance rates reported in this article are calculated based on information provided by partner lenders who pay compensation to Credible.

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%.

Credible mortgage rates reported here will only give you an idea of current average rates. The rate you actually receive can vary based on a number of factors.

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.

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 moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

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.