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The landscape of mortgage rates for home purchases is ever-evolving, with recent changes noted in several key terms. Based on data compiled by Credible as of September 14, 2023, here’s a breakdown of the latest trends:

For Mortgage Purchase Rates:

  • 30-Year Terms: Rates have edged down to 7.5%, offering borrowers a lower rate for the long term.
  • 20-Year Terms: Rates have remained unchanged at 7.875%.
  • 15-Year Terms: Rates increased the most, surging by three-quarters of a percentage point to 7.125%.
  • 10-Year Terms: These rates have held steady within the 6% range, making them a consistent choice.
  • Borrower Insights: Those seeking smaller monthly payments may find 30-year terms preferable, given rates are more than a quarter of a percentage point lower. For individuals aiming to maximize interest savings, 10-year terms offer the lowest mortgage purchase rate at 6.25%.

Mortgage Refinance Rates Also Show Movement:

  • 30-Year Terms: These rates have moved up to 7%, breaking their pattern of staying within the 6% range.
  • 20-Year Terms: Rates have slightly increased, reaching 6.875%.
  • 15-Year Terms: Rates for 15-year terms, offering the lowest refinance rate at 6.375%, have also seen a slight rise.
  • 10-Year Terms: These rates have risen by a quarter of a percentage point to 6.625%.
  • Interest Savings: Homeowners keen on saving the most on interest should consider 15-year terms.
  • Lower Monthly Payments: Those who prefer lower monthly payments may find 20-year terms appealing, given their rates are lower than those of 30-year terms.

These rates are a vital factor when considering mortgages and refinancing. It’s crucial to recognize that current rates are well below the record-high average of 16.63% in 1981. In recent years, the average rate for a 30-year fixed-rate mortgage stood at 3.94% in 2019 and dropped to 2.96% in 2021, the lowest annual average in three decades.

Economic conditions, central bank policies, investor sentiment, and other factors influence mortgage rates’ fluctuations. The rates reported by Credible are based on partner lenders’ information and are for borrowers with a 700 credit score, using conventional loans for primary residence single-family homes with a 20% down payment and minimal discount points.

Ultimately, it’s essential to understand the dynamics of mortgage rates and their impact on your financial situation. When seeking the right mortgage rate or refinancing option, tools like Credible can be valuable resources, offering comparisons from multiple lenders without affecting your credit score.



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