Today’s lowest mortgage rate? 10-year terms at 6.25% | September 5, 2023

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Check out the mortgage purchase rates for September 5, 2023, which are largely trending down from Friday. (Credible)

Based on data compiled by Credible, mortgage rates for home purchases have fallen for three key terms while another has risen since Friday.

30-year fixed mortgage rates: 7.625%, down from 8.125%, -0.500
20-year fixed mortgage rates: 7.750%, down from 8.125%, -0.375
15-year fixed mortgage rates: 7.125%, up from 6.125%, +1.000
10-year fixed mortgage rates: 6.250%, down from 6.375%, -0.125

Rates last updated on September 5, 2023. 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: After nearly a month of holding steady, rates for 20- and 30-year terms have finally fallen. Additionally, rates for 15-year terms have broken their two-week pattern of remaining in the 6% range by rising by a whole percentage point to 7.125%. Meanwhile, rates for 10-year terms continue to stay in the 6% range. Today, rates for 30-year terms have fallen by half of a percentage point to 7.625%. Rates for 20-year terms have also decreased, falling by over a quarter of a percentage point to 7.75%, while rates for 10-year terms have edged down to 6.25%. And rates for 15-year terms have increased by a full percentage point. Borrowers interested in saving the most on interest should consider 10-year terms, as 6.25% is today’s lowest interest rate. Homebuyers who would rather have a smaller monthly payment should instead consider 30-year terms, as 7.625% is the lowest rate of the two longer terms.

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 two key terms, while two other terms have remained unchanged since Friday.

30-year fixed-rate refinance: 6.875%, unchanged
20-year fixed-rate refinance: 6.875%, up from 6.750%, +0.125
15-year fixed-rate refinance: 6.125%, up from 6.000%, +0.125
10-year fixed-rate refinance: 6.250%, unchanged

Rates last updated on September 5, 2023. 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 across all terms have remained in the 6% range for the fourth day in a row. Today, rates for 10- and 30-year terms have remained unchanged at 6.25% and 6.875%, respectively. Meanwhile, rates for 15- and 20-year terms have edged up to 6.125% and 6.875%, respectively. Borrowers interested in refinancing into a lower monthly payment should consider either of today’s longer terms. Homeowners who would rather maximize their interest savings should instead consider today’s lowest rate, 15-year terms at 6.125%.

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.

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 700 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 to get low mortgage rates

If you want to get the lowest possible monthly mortgage payment, taking the following steps can help you secure a lower rate on your home loan:

Improving your credit score
Paying down debt
Making a bigger down payment

It’s also a good idea to compare rates from different lenders to find the best rate for your financial goals. According to research from Freddie Mac, borrowers can save $1,500 on average over the life of their loan by shopping for just one additional rate quote — and an average of $3,000 by comparing five rate quotes.

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.