20-year mortgage rates soar past 30-year rates | July 15, 2022

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Based on data compiled by Credible, mortgage refinance rates have risen across all terms since yesterday.

• 30-year fixed-rate refinance: 5.625%, up from 5.500%, +0.125
• 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: 4.750%, up from 4.625%, +0.125

Rates last updated on July 15, 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 across all terms today. Rates for a 10-year refinance are currently lower than rates for all other repayment terms, and are nearly a full percentage point lower than a 30-year term. 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: 5.625%, up from 5.500%, +0.125
• 20-year fixed mortgage rates: 5.875%, up from 5.500%, +0.375
• 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 15, 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 20-year mortgages spiked today, soaring past 30-year rates. With rates for 10- and 15-year loans more than a full percentage point lower than 20-year loans, borrowers who can afford higher monthly payments should comparison shop and consider shorter repayment terms to find their best possible rate. But with 20-year rates now higher than 30-year rates, buyers who want a longer repayment term should stick with a 30-year mortgage.

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 do I get a mortgage?

When you’re ready to buy a home, you should lock down your mortgage options before you begin house hunting. Having your financing lined up can make the process go smoother, and give you a leg up on other buyers who’ve not yet been prequalified or pre-approved for a mortgage.

Here are the general steps to getting a mortgage:

• Get a handle on your finances and credit. Add up your total monthly expenses and subtract them from your total monthly income to see how much you may be able to spend on a monthly mortgage payment. Check your credit score and report to correct any errors on your report and take action if you need to improve your credit score.
• Get pre-approved for a mortgage. Although pre-approval doesn’t guarantee the lender will give you a mortgage, it’s a strong indication you’ll be able to qualify for one when the time comes. Having a pre-approval letter can make your offer more attractive to potential sellers.
• Comparison shop. Once you’ve had an offer accepted on the house of your dreams, it’s time to compare rates from multiple mortgage lenders. Be sure to compare all the costs of a mortgage, not just the interest rate.
• Complete the full application. You’ll need to provide detailed information about your income, savings, monthly expenses, and overall financial situation.

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 

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.