Based on data compiled by Credible, mortgage rates for home purchases have fallen for two key terms and risen for two other terms since yesterday.
- 30-year fixed mortgage rates: 6.000%, down from 6.125%, -0.125
- 20-year fixed mortgage rates: 5.875%, down from 6.000%, -0.125
- 15-year fixed mortgage rates: 5.625%, up from 5.375%, +0.250
- 10-year fixed mortgage rates: 5.875%, up from 5.500%, +0.375
Rates last updated on Dec. 6, 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 20- and 30-year mortgage are down today, with rates for 20-year terms falling back below the 6% mark. Meanwhile, 15-year rates rose a quarter point, and 10-year rates rose 0.375 percentage points. Mortgage rates are likely to continue to fluctuate, so buyers who want a longer repayment term may want to lock in a low rate today ahead of likely rate fluctuations.
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 fallen for two key terms and risen for two other terms since yesterday.
- 30-year fixed-rate refinance: 6.000%, down from 6.125%, -0.125
- 20-year fixed-rate refinance: 5.875%, down from 6.000%, -0.125
- 15-year fixed-rate refinance: 5.625%, up from 5.375%, +0.250
- 10-year fixed-rate refinance: 5.875%, up from 5.500%, +0.375
Rates last updated on Dec. 6, 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 rates edged down for longer terms today, with 20-year rates dipping back under the 6% mark. Rates for 15-year terms are more than a quarter point lower than 30-year terms, meaning homeowners looking to refinance may want to consider a shorter term for greater interest savings. Shorter terms do come with higher monthly payments, but they offer the opportunity for homeowners to be mortgage-free sooner.
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.
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.
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 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 your monthly gross income by the total of all your monthly minimum debt payments. 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.