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Check out the mortgage rates for Jan. 20, 2023, which are largely unchanged from yesterday. (Credible)
Based on data compiled by Credible, mortgage rates for home purchases have risen for one key term and remained unchanged for three other terms since yesterday.
- 30-year fixed mortgage rates: 6.500%, unchanged
- 20-year fixed mortgage rates: 6.375%, up from 6.125%, +0.250
- 15-year fixed mortgage rates: 6.250%, unchanged
- 10-year fixed mortgage rates: 6.500%, unchanged
Rates last updated on Jan. 20, 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 for home purchases held steady for three key terms today, except for 20-year rates, which rose a quarter of a percentage point. Meanwhile, 30-year rates have rested at 6.5% for three straight days. Borrowers who want to take advantage of interest savings may want to consider 15-year rates, which are the lowest available at 6.25%. Though shorter terms come with higher monthly payments, they allow buyers to be mortgage-free sooner.
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 risen for one key term and remained unchanged for three other terms since yesterday.
- 30-year fixed-rate refinance: 6.500%, unchanged
- 20-year fixed-rate refinance: 6.000%, up from 5.875%, +0.125
- 15-year fixed-rate refinance: 6.000%, unchanged
- 10-year fixed-rate refinance: 6.250%, unchanged
Rates last updated on Jan. 20, 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: Twenty-year mortgage refinance rates edged up today, while rates for all other repayment terms held steady. With today’s rate changes, homeowners may want to consider a 15- or 20-year term, as they’re currently half a percentage point lower than rates for a 30-year refinance.
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.
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 my credit score affects my rate
Many factors can affect the interest rate you receive on a mortgage. Your credit score is an important one.
A higher credit score indicates to lenders that you know how to use credit responsibly. It can boost their confidence that you’ll make your mortgage payments on time and won’t default. Applying for a mortgage with a high credit score could help you qualify for lower interest rates, and give you a wider array of loan types to choose from.
Conversely, a low credit score may make lenders think you’ll have difficulty managing your mortgage, and may miss payments or even go into foreclosure. A low credit score likely means you’ll qualify for higher interest rates, and your loan choices will be more limited.
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 firstname.lastname@example.org and your question might be answered by Credible in our Money Expert column.