Today’s mortgage rates: Savings window opens as 15-year rates dive | May 4, 2022

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Check out the mortgage rates for May 4, 2022, which are mostly unchanged from yesterday. (Credible)

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

30-year fixed-rate refinance: 5.375%, unchanged
20-year fixed-rate refinance: 5.500%, up from 5.375%, +0.125
15-year fixed-rate refinance: 4.875%, unchanged
10-year fixed-rate refinance: 4.750%, unchanged

Rates last updated on May 4, 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 interest rates rested for three key terms, with one other key rate increasing. Homeowners may find 15-year rates particularly appealing, as they haven’t budged in three straight days.

Today’s mortgage rates for home purchases

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

30-year fixed mortgage rates: 5.375%, unchanged
20-year fixed mortgage rates: 5.500%, unchanged
15-year fixed mortgage rates: 4.625%, down from 4.875%, -0.250
10-year fixed mortgage rates: 4.750%, unchanged

Rates last updated on May 4, 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 15-year term fell by a quarter of a percentage point today, offering buyers an opportunity to save on interest. Rates for 10- and 15-year terms are resting under 5% and may be buyers’ best bet for greater interest savings. Shorter terms do come with higher monthly payments, but buyers who can swing those higher payments stand to save more on interest and become mortgage-free much sooner.

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.

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.

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.