Best mortgage bet for today's buyers? 20-year rates drop | Dec. 29, 2021
Mortgage refinance rates hold steady across all terms.
Check out the purchase mortgage and refinance rates for Dec. 29, 2021, which are mixed compared to yesterday. (iStock)
Based on data compiled by Credible, mortgage rates moved for three key terms since yesterday, including 20-year rates, which fell.
- 30-year fixed mortgage rates: 3.190%, unchanged
- 20-year fixed mortgage rates: 2.750%, down from 2.875%, -0.125
- 15-year fixed mortgage rates: 2.375%, up from 2.250%, +0.125
- 10-year fixed mortgage rates: 2.375%, up from 2.250%, +0.125
Rates last updated on Dec. 29, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
What this means: After two days of being mostly stable, today’s purchase rates showed their first movement of the week, with 20-year rates edging down slightly and 15-year and 10-year rates edging up. The dip in 20-year rates could give homebuyers who want a relatively lower monthly payment an opportunity to lock in a money-saving rate ahead of predicted increases next year.
These rates are based on the assumptions shown here. Actual rates may vary.
To find the best mortgage rate, start by using Credible, which can show you current mortgage and refinance rates:
Browse rates from multiple lenders so you can make an informed decision about your home loan.
Credible, a personal finance marketplace, has 4,500 Trustpilot reviews with an average star rating of 4.7 (out of a possible 5.0).
Looking at today’s mortgage refinance rates
Today’s mortgage refinance rates held steady across all terms since yesterday. Homeowners looking to reduce their interest costs over the life of their loans could give themselves a final holiday treat by locking in one of these lower rates ahead of predicted 2022 increases. If you’re considering refinancing an existing home, check out what refinance rates look like:
- 30-year fixed refinance rates: 3.190%, unchanged
- 20-year fixed refinance rates: 2.875%, unchanged
- 15-year fixed refinance rates: 2.375%, unchanged
- 10-year fixed refinance rates: 2.250%, unchanged
Rates last updated on Dec. 29, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
A site like Credible can be a big help when you’re ready to compare mortgage refinance loans. Credible lets you see prequalified rates for conventional mortgages from multiple lenders all within a few minutes. Visit Credible today to get started.
Credible has earned a 4.7-star rating (out of a possible 5.0) on Trustpilot and more than 4,500 reviews from customers who have safely compared prequalified rates.
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.
Current mortgage rates
The average mortgage interest rate across all terms is 2.673% today. This is significantly higher than in the beginning of December 2020, when the average was just 2.208%.
Current 30-year mortgage rates
The current interest rate for a 30-year fixed-rate mortgage is 3.190%. This is the same as yesterday. Thirty years is the most common repayment term for mortgages because 30-year mortgages typically give you a lower monthly payment. But they also typically come with higher interest rates, meaning you’ll ultimately pay more in interest over the life of the loan.
Current 20-year mortgage rates
The current interest rate for a 20-year fixed-rate mortgage is 2.750%. This is down from yesterday. Shortening your repayment term by just 10 years can mean you’ll get a lower interest rate — and pay less in total interest over the life of the loan.
Current 15-year mortgage rates
The current interest rate for a 15-year fixed-rate mortgage is 2.375%. This is up from yesterday. Fifteen-year mortgages are the second most-common mortgage term. A 15-year mortgage may help you get a lower rate than a 30-year term — and pay less interest over the life of the loan — while keeping monthly payments manageable.
Current 10-year mortgage rates
The current interest rate for a 10-year fixed-rate mortgage is 2.375%. This is up from yesterday. Although less common than 30-year and 15-year mortgages, a 10-year fixed rate mortgage typically gives you lower interest rates and lifetime interest costs, but a higher monthly mortgage payment.
You can explore your mortgage options in minutes by visiting Credible to compare current rates from various lenders who offer mortgage refinancing as well as home loans. Check out Credible and get prequalified today, and take a look at today’s refinance rates through the link below.
Thousands of Trustpilot reviewers rate Credible "excellent."
Rates last updated on Dec. 29, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
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 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 will only give you an idea of current average rates. The rate you receive can vary based on a number of factors.
How mortgage rates have changed
Today, mortgage rates are mixed compared to this time last week.
- 30-year fixed mortgage rates: 3.190%, down from 3.375% last week, -0.185
- 20-year fixed mortgage rates: 2.750%, down from 2.875% last week, -0.125
- 15-year fixed mortgage rates: 2.375%, the same as last week
- 10-year fixed mortgage rates: 2.375%, up from 2.250% last week, +0.125
Rates last updated on Dec. 29, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
If you’re trying to find the right rate for your home mortgage or looking to refinance an existing home, 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.
With more than 4,500 reviews, Credible maintains an "excellent" Trustpilot score.
When is it worth it to refinance?
Refinancing a mortgage can be a great way to save money. But it’s not always the best move for every homeowner.
People refinance for a number of reasons, including to get a lower interest rate, change their monthly payment amount, and lower their interest costs. Generally, if you can lower your interest rate by at least 0.75%, refinancing might be a good move.
Here’s an example of how refinancing can save you money: If you refinance your 30-year, $300,000 loan at 4% into a new 30-year loan with a 3.25% interest rate, you’ll lower your monthly payment from $1,432 to $1,306. That’s a monthly savings of $126, which adds up to $45,360 over the life of the mortgage.
But before you refinance, be sure to weigh closing costs, and calculate how long it will take before your savings from the refinance cover the expenses of refinancing.
Looking to lower your home insurance rate?
A home insurance policy can help cover unexpected costs you may incur during home ownership, such as structural damage and destruction or stolen personal property. Coverage can vary widely among insurers, so it’s wise to shop around and compare policy quotes.
Credible has a partnership with a home insurance broker. You can compare free home insurance quotes through Credible's partner here. It's fast, easy, and the whole process can be completed entirely online.
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.
As a Credible authority on mortgages and personal finance, Chris Jennings has covered topics that include mortgage loans, mortgage refinancing, and more. He’s been an editor and editorial assistant in the online personal finance space for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.