Today’s mortgage rates: 15-year rates take the lead as the day’s lowest | June 7, 2022
With 15-year rates a full percentage point lower than 20-year rates, the shorter term is buyers’ best option for greater interest savings
Written by
Chris Jennings is an authority on mortgages and personal finance. His work has been featured by Fox Business, MSN, AOL, and Yahoo Finance.
Updated October 16, 2024, 2:55 AM EDT
- 30-year fixed-rate refinance: 5.375%, up from 5.125%, 0.250
- 20-year fixed-rate refinance: 5.250%, down from 5.375%, -0.125
- 15-year fixed-rate refinance: 4.500%, up from 4.250%, +0.250
- 10-year fixed-rate refinance: 4.750%, up from 4.490%, +0.260
Rates last updated on June 7, 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: Longer repayment terms tend to be the most popular because they spread a homeowners’ payment out over a longer period of time. But with 30-year refinance rates surging a quarter point since yesterday, homeowners stand to save more on interest with a shorter term.
Today’s mortgage rates for home purchases
- 30-year fixed mortgage rates: 5.375%, up from 5.125%, +0.250
- 20-year fixed mortgage rates: 5.500%, up from 4.875%, +0.625
- 15-year fixed mortgage rates: 4.500%, up from 4.375%, +0.125
- 10-year fixed mortgage rates: 4.750%, up from 4.375%, +0.375
Rates last updated on June 7, 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 20-year mortgages spiked today, soaring past 30-year rates. And while all four key interest rates rose, 15-year rates hold the position as the lowest available. Borrowers who can afford higher monthly payments should comparison shop and consider shorter repayment terms to find their best possible rate. But with 20-year rates soaring past 30-year rates, buyers who want a longer repayment term should stick with a 30-year mortgage.
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.
Thousands of Trustpilot reviewers rate Credible "excellent."
How Credible mortgage rates are calculated
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%.
Fixed vs. adjustable-rate mortgages: How they affect interest costs
Interest rates for fixed-rate mortgages don’t change over the life of the loan but tend to be higher than the initial interest rate for adjustable-rate mortgages, or ARMs.
Initial interest rates for ARMs are typically lower than fixed-rate mortgages. But after the end of an introductory period, your interest rate will change — and it could increase significantly. Introductory periods can vary from several months to a year or a few years. After the introductory period, your interest rate will be based on an index your lender specifies. ARMs may or may not cap how much your interest rate can increase.
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.
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.