Looking for today’s lowest mortgage rate? Try 10-year terms at 5.625% | July 19, 2023

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

Rates last updated on July 19, 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 rates have broken their pattern of remaining unchanged, with 20-year terms falling by a quarter of a percentage point to 7.875%. Meanwhile, rates for 30-year terms have remained at 7.5%. Additionally, rates for 10- and 15-year terms have also remained unchanged at 5.625% and 7.125%, respectively. Borrowers interested in maximizing their interest savings should consider 10-year terms, as 5.625% is today’s lowest rate. Homebuyers who would rather have a smaller monthly payment should instead consider 30-year terms, as their rates are the lowest out 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 remained unchanged for two key terms, while one term has risen and another has fallen since yesterday.

Rates last updated on July 19, 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 have held their pattern of longer terms staying above 6%, while shorter terms stay within the 5% range. Today, rates for 10- and 30-year terms have remained unchanged at 5.625% and 6.625%, respectively. Meanwhile, rates for 15-year terms have edged up to 5.875%. Additionally, rates for 20-year terms have slightly decreased to 6.375%. Homeowners looking to refinance into a lower mortgage payment should consider 20-year terms, as their rates are a quarter of a percentage point lower than those of 30-year terms. Borrowers who would rather save the most on interest should instead consider today’s lowest rate, 10-year terms at 5.625%.

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 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.

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