Based on data compiled by Credible, three key mortgage refinance rates have risen and one remained unchanged since yesterday.
- 30-year fixed-rate refinance: 5.500%, up from 5.490%, +0.010
- 20-year fixed-rate refinance: 5.250%, up from 5.125%, +0.125
- 15-year fixed-rate refinance: 4.875%, up from 4.750%, +0.125
- 10-year fixed-rate refinance: 4.875%, unchanged
Rates last updated on July 20, 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: Mortgage refinance rates edged up for three key terms today, bringing 30-year rates up to 5.5%. Rates for shorter terms remain under 5%, but recent increases narrow the gap between longer and shorter terms. Still, homeowners looking to refinance may find that 15-year terms offer the best opportunity for a lower interest rate and manageable monthly payment.
Today’s mortgage rates for home purchases
Based on data compiled by Credible, mortgage rates for home purchases have risen across all terms since yesterday.
- 30-year fixed mortgage rates: 5.500%, up from 5.490%, +0.010
- 20-year fixed mortgage rates: 5.250%, up from 5.125%, +0.125
- 15-year fixed mortgage rates: 4.875%, up from 4.750%, +0.125
- 10-year fixed mortgage rates: 4.875%, up from 4.750%, +0.125
Rates last updated on July 20, 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: Rates for mortgage purchases edged slightly up across all terms today, with 30-year rates hitting 5.5%. Shorter repayment terms remain buyers’ best savings options, as 10- and 15-year terms are still under 5%. With the next Federal Reserve meeting set for July 26-27, borrowers may want to lock in a rate this week in case the committee bumps up the federal funds rate again. Mortgage rates hit a high in late June, following the Fed’s last interest rate increase.
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 much can I borrow for a mortgage?
It’s critical to have an idea of how much you can afford to borrow for a mortgage before you begin home shopping or make an offer on a house.
Generally, the 28/36 rule is a good measure of how much you can afford to borrow without strapping your finances. The rule states that your mortgage payment, including taxes and insurance, shouldn’t be more than 28% of your gross monthly income. And all your debts, including your mortgage and other monthly expenses like car and student loan payments, shouldn’t exceed 36% of your gross monthly income.
For example, if your gross monthly income is $6,250 (annual salary of $75,000), you should be able to afford a monthly payment of $1,750. And your total monthly debt load shouldn’t exceed $2,250.
A general rule of thumb is that you shouldn’t take out a mortgage that’s two to two and half times your gross annual income. So in the above scenario, the maximum you should borrow to buy a house would be $187,500.
Ultimately, lenders determine how much you can afford to borrow by weighing your income, debt, assets, credit, and other financial factors.
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.