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What is today’s lowest mortgage rate? Consider shorter terms | September 15, 2023

By Sarah Maroney
Published  September 15, 2023 1:24pm EDT
Personal Finance
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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, all opinions are our own.

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Check out the mortgage rates for September 15, 2023, which are mixed from yesterday. (Credible)

Based on data compiled by Credible, mortgage rates for home purchases have risen for two key terms, while two others have remained the same since yesterday.

Rates last updated on September 15, 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: For nearly a month and a half, mortgage purchase rates for 10-year terms have stayed in the 6% range. Today, rates for 30-year terms have edged up to 7.625%. Rates for 10-year terms also saw an increase, rising by a quarter of a percentage point to 6.5%. Meanwhile, rates for 15- and 20-year terms have remained unchanged, staying at 7.125% and 7.875%, respectively. Borrowers interested in saving the most on interest should consider 10-year terms, as 6.5% is today’s lowest purchase rate. Homebuyers who would rather have a lower monthly payment should instead consider 30-year terms, as their rates are a quarter of a percentage point lower than those of 20-year 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 fallen across all key terms since yesterday.

Rates last updated on September 15, 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: With 30-year terms edging down, all key mortgage refinance rates have returned to the 6% range. Rates for 10-, 15-, and 20-year terms have remained in the 6% range for the past six days. Today, rates for 10- and 15-year terms have fallen by a quarter of a percentage point, hitting 6.375% and 6.125%, respectively. Additionally, rates for 20-year terms have also fallen by a quarter of a percentage point, reaching 6.625%. Homeowners looking to refinance into a smaller monthly payment should consider 20-year terms, as their rates are a quarter of a percentage point lower than those of 30-year terms. Borrowers who would rather maximize their interest rates should instead consider today’s lowest refinance rate, 15-year terms at 6.125%.

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.

Getting a mortgage vs. renting

If you’re wondering if you should buy a house or continue renting, no single answer is right for everyone. Whether you should buy or continue renting depends on many factors, including your personal financial situation, long-term goals, preferred lifestyle, and market conditions in your area.

Buying a home does come with some distinct advantages that you can’t get from renting, including ...

  • You can build equity. Home equity can help you build long-term wealth.
  • You can personalize your living space more than with a rental that someone else owns.
  • Owning a home can provide intangible benefits like pride of ownership, a sense of community, and stability.
  • Your mortgage payment may be less than rents in your area.
  • Mortgage interest is usually tax deductible.

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.