Today’s 20-year mortgage rates plummet to 44-day low | July 28, 2022

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Check out the mortgage rates for July 28, 2022, which are down from yesterday. (Credible)

Based on data compiled by Credible, two key mortgage refinance rates have fallen and one has risen since yesterday.

30-year fixed-rate refinance: 5.125%, down from 5.875%, -0.750
20-year fixed-rate refinance: 5.375%, up from 4.875%, +0.500
15-year fixed-rate refinance: 4.500%, down from 4.875%, -0.375
10-year fixed-rate refinance: 4.875%, unchanged

Rates last updated on July 28, 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: At just 5.125%, 30-year mortgage refinance rates haven’t been lower than this since May 31. Rates for 15-year refinance terms also fell significantly, and 20-year terms edged up half a point, soaring past 30-year rates. Homeowners looking to refinance to a longer term stand to save the most on interest with 30-year rates.

Today’s mortgage rates for home purchases

Based on data compiled by Credible, mortgage rates for home purchases have fallen across all terms since yesterday.

30-year fixed mortgage rates: 5.250%, down from 5.875%, -0.625
20-year fixed mortgage rates: 4.750%, down from 4.875%, -0.125
15-year fixed mortgage rates: 4.500%, down from 4.750%, -0.250
10-year fixed mortgage rates: 4.375%, down from 4.500%, -0.125

Rates last updated on July 28, 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 fell across all terms today, with 30-year rates falling more than half a point. Buyers looking for a combination of a lower interest rate and smaller monthly mortgage payments may find their best deal with 20-year rates, which are the lowest they’ve been in 44 days. Home purchasers who can swing a larger monthly payment still stand to save the most with a 10- or 15-year mortgage.

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.

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.

How do I choose a mortgage lender?

A mortgage is likely the largest debt you’ll take on in life – one that will take decades to repay. So it’s critical to make sure you choose a mortgage lender and mortgage that work best for your needs and financial situation.

Here are some tips to help you choose a mortgage lender:

Comparison shop. Compare rates and terms from multiple lenders. Just as you comparison shop for less important purchases, you should compare offers from several lenders. A Freddie Mac study found that adding just one quote to your mortgage search could save you $1,500 over the life of a loan. Adding five could save you about $3,000. Credible makes it easy to compare your prequalified rates from multiple lenders.
Consider a mortgage broker. Mortgage brokers can do the legwork for you when it comes to finding a loan deal. But be aware that mortgage brokers typically make money by charging a small percentage of the loan for their services.
Leverage relationships. Explore mortgage offerings from banks and financial institutions you already do business with. Loyalty and familiarity may work in your favor in negotiating a good mortgage deal.
Look for referrals. Ask friends, family, coworkers, and neighbors for referrals, and about their experiences with different lenders

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.