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According to data compiled by Credible, mortgage rates for home purchases have fallen for three major periods and remained unchanged for one period since yesterday.
Prices last updated on December 14, 2022. These rates are based on the assumptions shown here. Actual rates may vary. Credible, the personal finance marketplace, has 5,000+ Trustpilot reviews with an average rating of 4.7 stars (out of a possible 5.0).
What does this mean. 30-year mortgage rates fell by more than half a percentage point today, bringing this popular amortization back below 6%. Meanwhile, 15-year and 20-year rates also declined, while 10-year rates remained steady. Buyers who want a longer repayment term may want to lock in a 30-year rate today. A rate lock could keep their mortgage rate below 6% regardless of future increases.
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 refinancing rates decreased for three main periods and remained unchanged for one period from yesterday.
Prices last updated on December 14, 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 does this mean. Homeowners looking to refinance for a longer term have the option to lock in a 30-year rate as low as 6% today. At 5.875%, the 30-year refinance offers homeowners a relatively low interest rate and smaller monthly payments. With rates below 6% for all prime terms, homeowners may want to lock in a refinance rate today, ahead of future increases.
How have mortgage rates changed over time?
Today’s mortgage rates are significantly lower than the highest average annual rate recorded by Freddie Mac of 16.63% in 1981. A year before the COVID-19 pandemic crippled economies around the world, the average interest rate for a 30-year fixed-rate mortgage. In 2019, it was 3.94%. The average rate for 2021 was 2.96%, which is the annual average rate for the last 30 years.
Historically low interest rates mean that homeowners with mortgages from 2019 and older can potentially realize significant interest savings by refinancing at one of today’s low interest rates. When considering a mortgage refinance or purchase, it’s important to consider closing costs such as appraisal, application, origination and attorney 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 interest rates from multiple mortgage lenders in a few minutes at a time. Use Credible’s online tools to compare rates and get pre-qualified today.
Thousands of Trustpilot reviewers give a trusted rating of ‘excellent’.
How are creditable mortgage rates calculated?
Changing economic conditions, central bank policy decisions, investor sentiment and other factors affect the movement of mortgage interest rates. The average Credible mortgage interest rates and mortgage refinance rates presented in this article are calculated based on information provided by partner lenders that reimburse Credible.
The rates assume the borrower has a credit score of 740 and is taking out a conventional loan for a single-family home that will be their primary residence. Prices also assume no (or very low) discount points and a 20% down payment.
The reliable mortgage interest rates presented here will only give you an idea of the current average interest rates. The rate you receive may vary based on a number of factors.
Can I get a mortgage with bad credit?
Credit scores are a snapshot of your credit history and typically range from 300 to 850. FICO, a widely used credit scoring model, divides credit scores into:
- Poor: 579 or less
- Fair. 580 to 669
- OK. 670 to 739
- Very good: From 740 to 799
- Exceptionally. 800 or more
To get a conventional loan that is not backed by any government agency, you usually need a fair credit score of at least 620. Credit score below 500.
And Veterans Administration loans for veterans, active duty service members and their spouses have no minimum credit score requirements. USDA loans, which help very low-income Americans buy in certain rural areas, also have no minimum credit score requirements.
If you’re trying to find the right mortgage rate, consider using Credible. You can use Credible’s free online tool easily compare multiple lenders and see pre-qualified interest rates in just a few minutes.
Have questions about your finances but don’t know who to ask? Email a trusted money expert firstname.lastname@example.org and your question can be answered by Credible in our Money Expert column.
As a trusted authority on mortgages and personal finance, Chris Jennings has covered topics that include mortgages, mortgage refinancing, and more. He was an editor and assistant editor at Online Personal Finance for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.