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Based on data collected by Credible, refinancing interest rates on mortgages has risen in three key terms since last Friday, except for 10-year interest rates, which remained unchanged.
Prices last updated on April 11, 2022. These prices are based on the assumptions shown here. Actual prices may vary. With 5,000 reviews, Credible maintains an “excellent” Trustpilot score.
What does this mean: Longer-term prices rose markedly over the weekend, with 30- and 20-year rates reaching pre-pandemic heights. With rates for 15-year terms also rising by a quarter of a percentage point today, homeowners who can handle higher monthly payments may consider a 10-year term instead.
Today’s mortgage rates on home purchases
Based on data collected by Credible, mortgage rates on home purchases rose across three key terms since last Friday, with the exception of 30-year interest rates, which fell.
Prices last updated on April 11, 2022. These prices are based on the assumptions shown here. Actual prices may vary. Credible, a personal finance marketplace, has 5,000 Trustpilot reviews with an average star rating of 4.7 (out of possible 5.0).
What does this mean: Mortgage rates for a 30-year term, which is the most popular term, fell back below the 5% limit today, allowing buyers to lock in a slightly lower interest rate. Buyers who can swing a higher monthly payment may want to consider locking in a rate for a 10-year period. With 4.125%, a 10-year interest rate can give buyers even more interest savings than a longer interest rate.
To find good 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 repayments.
How mortgage rates have changed over time
Today’s mortgage rates are well below the highest annual average interest rate recorded by Freddie Mac – 16.63% in 1981. A year before the COVID-19 pandemic turned on economies around the world, the average interest rate on a 30-year fixed-rate mortgage was pr. 2019 was 3.94 per cent. The average rate for 2021 was 2.96%, the lowest annual average in 30 years.
The historic fall in interest rates means that homeowners who have mortgages from 2019 and older can potentially realize significant interest savings by refinancing with one of today’s lower interest rates. When considering a mortgage or refinancing, it is important to consider final costs such as appraisal, application, set-up and attorney’s fees. These factors, in addition to the interest rate and the loan amount, all contribute to the price of a mortgage.
Are you looking to buy a home? Credible can help you Compare current rates from multiple mortgage lenders at once in a few minutes. Use Credible’s online tools to compare prices and get pre-qualified today.
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How credible mortgage rates are calculated
Changing economic conditions, central bank policy decisions, investor sentiment and other factors affect the movement in mortgage rates. Credible average mortgage rates and mortgage refinancing rates reported in this article are calculated based on information provided by partner lenders who pay compensation to Credible.
The rates assume that a borrower has a credit score of 740 and borrows 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 payout of 20%.
Credible mortgage rates reported here will only give you an idea of the current average interest rates. The price you actually receive may vary based on a number of factors.
What is a good mortgage rate?
Generally, a good mortgage rate is one that is the lowest you can qualify for based on your individual factors such as credit history, income, other debt, payout amounts and more.
A rate that is good for your financial situation should result in a monthly mortgage repayment that you can manage, while leaving plenty of room in your monthly budget to use for savings, investments and an emergency fund. And a good price should be competitive with average prices in the geographic area where you want to buy.
If you are trying to find the right mortgage rate, consider using Credible. You can use Credibles free online tool to easily compare multiple lenders and see pre-qualified rates in minutes.
Do you have a finance-related question but do not know who to ask? Send an email to The Credible Money Expert at firstname.lastname@example.org and your question may 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 mortgages, mortgage refinancing and more. He has been an editor and editorial assistant in the online personal finance field for four years. His work has been highlighted by MSN, AOL, Yahoo Finance and more.