Today’s mortgage rates: 30- and 20-year rates plunge | July 18, 2022
With rates falling across all repayment terms, buyers stand to save by locking in a rate today ahead of further increases.
Based on data compiled by Credible, two key mortgage refinance rates have fallen, one rose, and a fourth remained unchanged since last Friday.
- 30-year fixed-rate refinance: 5.875%, up from 5.625%, +0.250
- 20-year fixed-rate refinance: 4.990%, down from 5.250%, -0.260
- 15-year fixed-rate refinance: 4.875%, unchanged
- 10-year fixed-rate refinance: 4.500%, down from 4.750%, -0.250
Rates last updated on July 18, 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: Rates for a 20-year mortgage refinance dipped back under the 5% mark today, while rates for 30-year terms edged up. Rates for 10- and 15-year terms are a full percentage point or more lower than 30-year terms, meaning homeowners looking to refinance may want to consider a shorter term for greater interest savings. But homeowners looking to stick with a longer term should consider refinancing to a 20-year term while rates are under 5%.
Today’s mortgage rates for home purchases
Based on data compiled by Credible, mortgage rates for home purchases have fallen across all repayment terms since last Friday.
- 30-year fixed mortgage rates: 5.375%, down from 5.625%, -0.250
- 20-year fixed mortgage rates: 4.990%, down from 5.875%, -0.885
- 15-year fixed mortgage rates: 4.750%, down from 4.875%, -0.125
- 10-year fixed mortgage rates: 4.750%, down from 4.875%, -0.125
Rates last updated on July 18, 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: Mortgage rates edged down across all terms today, with rates for a 20-year term falling nearly a full percentage point and 30-year rates also falling significantly. Buyers looking for a combination of a lower interest rate and smaller monthly mortgage payments may want to consider 20-year rates, which are the lowest they’ve been in 10 days. Home purchasers who can swing a larger monthly payment still stand to save the most with a 10- or 15-year mortgage.
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.
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.
Thousands of Trustpilot reviewers rate Credible "excellent."
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.
How to get low mortgage rates
If you want to get the lowest possible monthly mortgage payment, taking the following steps can help you secure a lower rate on your home loan:
- Improving your credit score
- Paying down debt
- Making a bigger down payment
It’s also a good idea to compare rates from different lenders to find the best rate for your financial goals. According to research from Freddie Mac, borrowers can save $1,500 on average over the life of their loan by shopping for just one additional rate quote – and an average of $3,000 by comparing five rate quotes.
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 email@example.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.