{"id":9121,"date":"2023-08-06T08:26:07","date_gmt":"2023-08-06T08:26:07","guid":{"rendered":"https:\/\/isafespend.com\/personal-finance\/mortgage\/todays-lowest-mortgage-rate-10-year-terms-at-5-625-july-20-2023\/"},"modified":"2023-08-06T08:26:07","modified_gmt":"2023-08-06T08:26:07","slug":"todays-lowest-mortgage-rate-10-year-terms-at-5-625-july-20-2023","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=9121","title":{"rendered":"Today’s lowest mortgage rate? 10-year terms at 5.625% | July 20, 2023"},"content":{"rendered":"
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Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders who compensate us for our services, all opinions are our own.<\/p>\n<\/div>\n

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Based on data compiled by Credible, mortgage rates for home purchases have remained unchanged across all key terms since yesterday.<\/p>\n

Rates last updated on July 20, 2023. These rates are based on the assumptions shown <\/i>here<\/u><\/i>. 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).<\/i><\/p>\n

What this means:<\/strong> Mortgage purchase rates have returned to a pattern of holding steady across all key rates after yesterday\u2019s small decrease in 20-year terms. Today\u2019s longer terms have held steady at 7.875% and 7.5% for 20- and 30-year terms, respectively. Additionally, rates for 10- and 15-year terms have remained at 5.625% and 7.125%, respectively. Borrowers interested in a smaller monthly payment should consider 30-year terms, as they have the lower rate between the two longer terms. Homebuyers who would rather save the most on interest should instead consider today\u2019s lowest rate, 10-year terms at 5.625%.<\/p>\n

To find great mortgage rates, start by using Credible\u2019s secured website, which can show you current mortgage rates from multiple lenders without affecting your credit score. You can also use Credible\u2019s mortgage calculator<\/u> to estimate your monthly mortgage payments.<\/p>\n

Based on data compiled by Credible, mortgage refinance rates<\/u> have held steady for three key terms, while another has fallen since yesterday.<\/p>\n

Rates last updated on July 20, 2023. These rates are based on the assumptions shown <\/i>here<\/u><\/i>. Actual rates may vary. With 5,000 reviews, Credible maintains an “excellent” Trustpilot score.<\/i><\/p>\n

What this means:<\/strong> Mortgage refinance rates continue to have longer terms above 6%, while shorter terms remain in the 5% range. Today, rates for 15-year terms have edged down to 5.75%. Meanwhile, rates for 20- and 30-year terms have remained unchanged at 6.375% and 6.625%, respectively. Additionally, rates for 10-year terms have stayed the same in addition to remaining today\u2019s lowest rate at 5.625%. Homeowners looking to maximize their interest savings should consider 10-year terms. Borrowers who would rather have a lower monthly payment should instead consider 20-year terms, as their rates are a quarter of a percentage point lower than those of 30-year terms.<\/p>\n

How mortgage rates have changed over time<\/strong><\/h2>\n

Today\u2019s mortgage interest rates are well below the highest annual average rate recorded by Freddie Mac \u2014 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.<\/p>\n

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\u2019s lower interest rates. When considering a mortgage or refinance, it\u2019s important to take into account closing costs such as appraisal, application, origination and attorney\u2019s fees. These factors, in addition to the interest rate and loan amount, all contribute to the cost of a mortgage.\u00a0<\/p>\n

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How Credible mortgage rates are calculated<\/strong><\/h2>\n

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.<\/p>\n

The rates assume a borrower has a 700 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%.<\/p>\n

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.<\/p>\n

Can I get a mortgage with bad credit?<\/strong><\/h2>\n

Credit scores are a snapshot of your credit history, and they usually range from 300 to 850. FICO, a widely used credit-scoring model, breaks down credit scores this way:<\/p>\n