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Today’s best mortgage deal? 10-year terms remain at 6.12 percent | July 7, 2023

By Sarah Maroney
Published  July 7, 2023 4:15pm EDT
Personal Finance
Content provided by Credible, which is majority owned by Fox Corporation. Credible is solely responsible for this content and the services it provides.

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, all opinions are our own.

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Check out the mortgage rates for July 7, 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, while three others have remained stable since yesterday.

Rates last updated on July 7, 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 have largely remained stable since yesterday, with the exception of rates for 15-year terms surging by over three-quarters of a percentage point to 7.125%. Rates for 10-year terms have remained as the day’s lowest rate at 6.125%. Additionally, rates for 20- and 30-year terms have remained unchanged at 8% and 7.625%, respectively. Borrowers interested in saving the most on interest should consider 10-year terms. Homebuyers who would rather have a smaller monthly payment should instead consider 30-year terms, as their rates are the lowest out of the two longer terms.

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 three key terms, while one term remained unchanged since yesterday.

Rates last updated on July 7, 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: Mortgage refinance rates have risen above 7% for the first time since the end of May. Rates for 30-year terms have jumped by over a quarter of a percentage point to 7.25%. Rates for 20-year terms have also increased significantly, rising by over a half of a percentage point to 7.125%. Lastly, rates for 15-year terms have edged up to 6.375%. Meanwhile, rates for 10-year terms have remained unchanged at 6.125%, today’s lowest rate. Homeowners looking to refinance into a lower monthly payment should consider 20-year terms, as their rates are lower than those of 30-year terms. Borrowers who would rather maximize their interest savings should instead consider 10-year terms.

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 or refinance, 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. 

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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 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%.

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.

Can I get a mortgage with bad credit?

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:

  • Poor: 579 or less
  • Fair: 580 to 669
  • Good: 670 to 739
  • Very good: 740 to 799
  • Exceptional: 800 or more

To qualify for a conventional loan — one that’s not backed by any government agency — you’ll usually need a fair credit score of at least 620. But it’s possible to qualify for FHA loans, which are insured by the Federal Housing Administration, with a poor credit score as low as 500. 

And Veterans Administration loans, which are for veterans, active-duty service members, and their spouses, have no minimum credit score requirements. USDA loans, which help very low-income Americans buy in certain rural areas, also have no minimum credit score requirements.

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 moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.