Today’s biggest mortgage rates savings? 15-year terms remain lowest | September 6, 2023

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Check out the mortgage rates for September 6, 2023, which are largely trending up from yesterday. (Credible)

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

30-year fixed mortgage rates: 8.000%, up from 7.625%, +0.375
20-year fixed mortgage rates: 8.000%, up from 7.750%, +0.250
15-year fixed mortgage rates: 6.375%, down from 7.125%, -0.750
10-year fixed mortgage rates: 6.500%, up from 6.250%, +0.250

Rates last updated on September 6, 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: Mortgage purchase rates have returned to the 8% range for today’s longer terms. Meanwhile, 10-year terms continue to remain in the 6% range. Today, rates for 10- and 20-year terms have increased by a quarter of a percentage point, hitting 6.5% and 8%, respectively. Additionally, rates for 30-year terms have risen by over a quarter of a percentage point to 8%, while rates for 15-year terms have plummeted by three-quarters of a percentage point to 6.375%. Homebuyers interested in maximizing their interest savings should consider 15-year terms, as 6.375% is today’s lowest mortgage purchase rate. Borrowers who would rather have a lower monthly payment should instead consider either of today’s 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 all but one key term since yesterday.

30-year fixed-rate refinance: 6.990%, up from 6.875%, +0.115
20-year fixed-rate refinance: 6.750%, down from 6.875%, -0.125
15-year fixed-rate refinance: 6.250%, up from 6.125%, +0.125
10-year fixed-rate refinance: 6.375%, up from 6.250%, +0.125

Rates last updated on September 6, 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 for all key terms have remained in the 6% range for the fifth day in a row. Today, rates for 30-year terms have edged up to 6.99%, while rates for 20-year terms have fallen to 6.75%. Additionally, rates for 10- and 15-year terms have slightly increased, hitting 6.375% and 6.25%, respectively. Borrowers interested in saving the most on interest rates should consider 15-year terms, as 6.25% is today’s lowest refinance rate. Homeowners who would rather have a lower monthly payment should instead consider 20-year terms, as their rates are nearly a quarter of a percentage point lower than those of 30-year terms.

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.

Factors that influence mortgage rates (and are in your control)

Many factors affect what mortgage interest rate you can qualify for, and some of them are within your control. Improving these factors could help you qualify for a lower interest rate.

Credit score — Generally, the lowest interest rates go to borrowers with the highest credit scores.
Debt-to-income ratio — DTI is a percentage that compares your total debts with your income. To calculate DTI, divide the total of all your monthly minimum debt payments by your gross monthly income. Generally, lenders prefer a DTI of 35% or less.
Down payment amount — Generally, lenders (and many sellers) look favorably on a higher down payment amount. If you put down less than 20% of the home’s purchase price, many lenders will require you to pay for private mortgage insurance, which protects the lender (not you) if you fail to repay the mortgage.
Home location/price — Interest rates can vary depending on what state you live in and where in the state you’re buying. Likewise, if you need to borrow a lot more than average (a jumbo loan) or very little, you may get a higher interest rate.
Repayment term — The lowest rates typically come with 10- or 15-year terms, while 30-year terms usually have the highest interest rates.

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.