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Based on data compiled by Credible, home equity mortgage rates are mixed today, with two major rates rising, one falling and the other from yesterday.
Prices last updated on December 15, 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. Interest rates on the 20-year mortgage fell yesterday, falling to their lowest level since August. Meanwhile, 15-year and 30-year rates rose significantly, while 10-year rates held steady. Borrowers looking for a longer repayment term can expect greater interest savings with 20-year interest rates currently as low as 5.5%. Pricing for this term offers a combination of a low interest rate and a manageable monthly payment.
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 today are mixed, two major exchange rates are up, one is down and the other is unchanged from yesterday.
Prices last updated on December 15, 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. Twenty-year mortgage refinance rates dropped today, offering a small savings window for homeowners looking to refinance for a longer term. Meanwhile, 15-year and 30-year rates rose significantly, while 10-year rates held steady. Homeowners looking to refinance for a longer term may want to lock in a 20-year rate today before potential 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.
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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.
Why do mortgage interest rates fluctuate?
Here are some of the most common reasons why mortgage rates change frequently:
Forms of employment
The employment rate is an indicator of the demand for mortgage loans. When more people are unemployed, fewer people will be looking to get a mortgage and buy a home, and that lower demand will lower interest rates. As employment levels improve, mortgage demand is likely to pick up pace. And as demand for mortgages increases, so do mortgage rates.
Because bonds are a lower-risk type of investment, demand for bonds can increase when investors are wary of other investment vehicles or fear the general state of the economy. An increase in demand for bonds causes their price to rise and returns, called yields, to fall.
When bond yields fall, consumer interest rates usually do too, including mortgage rates. When investors feel more confident about the economy, demand for bonds falls, bond prices fall and yields rise. And interest rates tend to follow.
Federal Reserve System
The Fed, as it is commonly called, is the central bank of the United States. But it doesn’t actually set mortgage rates. Rather, several things the Fed does affect mortgage rates. For example, while mortgage rates don’t reflect the Federal Funds Rate, the rate that banks charge when they lend to each other overnight, they tend to follow it. If that interest rate rises, mortgage rates usually rise in tandem.
Global banking systems and economies are closely interconnected. When economies in other parts of the world, especially Europe and Asia, decline, it affects investors and financial institutions in the United States. And when foreign economies do well, they can attract more American investors and divert those investment dollars away from the U.S. economy.
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? Send an email [email protected] 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.