Today's mortgage rates: Look to 15-year terms to save | May 20, 2022
Sitting a full point lower than volatile 30-year rates, 15-year rates may present buyers with the best savings opportunity.
Check out the mortgage rates for May 20, 2022, which are mixed from yesterday. (Credible)
Based on data compiled by Credible, mortgage refinance rates have fallen for three terms and remained unchanged for the shortest term since yesterday.
- 30-year fixed-rate refinance: 5.000%, down from 5.250%, -0.250
- 20-year fixed-rate refinance: 4.750%, down from 4.875%, -0.125
- 15-year fixed-rate refinance: 4.375%, down from 4.500%, -0.125
- 10-year fixed-rate refinance: 4.375%, unchanged
Rates last updated on May 20, 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: After soaring to 5.5% mid-week, rates for a 20-year refinance have been slipping downward for two straight days. At 4.750%, this mid-length term will come with a manageable monthly payment while allowing homeowners to save interest over the life of their mortgage.
Today’s mortgage rates for home purchases
Based on data compiled by Credible, mortgage rates for home purchases have risen for two terms and fallen for two others since yesterday.
- 30-year fixed mortgage rates: 5.375%, down from 5.500%, -0.125
- 20-year fixed mortgage rates: 5.375%, up from 4.990%, +0.385
- 15-year fixed mortgage rates: 4.375%, down from 4.500%, -0.125
- 10-year fixed mortgage rates: 4.625%, up from 4.375%, +0.250
Rates last updated on May 20, 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: With 15-year mortgage rates closing the week at a full percentage point lower than 30- and 20-year rates, homebuyers might consider this mid-length term to reap the most interest savings. Even 10-year terms, which normally have the lowest rates, are sitting at 4.625% today — making 15-year rates the better bargain.
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 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.
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.
Factors that influence mortgage rates (and are out of your control)
Many factors influence the interest rate a lender may offer you. Some — such as your credit score — are in your control. But others you have no ability to affect, such as:
- The economy — During financial downturns, the Fed may lower interest rates to try to stimulate the economy. And when the economy is doing well, interest rates can rise.
- Inflation — Interest rates tend to move with inflation. When the overall cost of goods and services increases, interest rates are also likely to rise.
- The Federal Reserve — The Fed may choose to lower interest rates to stimulate a struggling economy, or raise rates in an attempt to put the brakes on inflation.
- Macro employment trends — When many people are out of work, as they were during the months of pandemic lockdown, mortgage rates may fall. As employment increases, interest rates typically also increase.
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.