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Check out the mortgage rates for March 21, 2022, which are trending down from last Friday. (Credible)
Based on data compiled by Credible, mortgage refinance rates have fallen across all terms since last Friday.
- 30-year fixed-rate refinance: 4.375%, down from 4.500%, -0.125
- 20-year fixed-rate refinance: 4.250%, down from 4.375%, -0.125
- 15-year fixed-rate refinance: 3.500%, down from 3.750%, -0.250
- 10-year fixed-rate refinance: 3.375%, down from 3.500%, -0.125
Rates last updated on March 21, 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: Homeowners who took out their mortgages in 2019 or earlier, when rates were much higher, could stand to save significantly on interest by refinancing today. While rates for longer terms remain above 4%, they’ve edged down since last Friday. Rates for 15- and 10-year terms continue to offer the most money-saving opportunities for homeowners looking to refinance.
Today’s mortgage rates for home purchases
Based on data compiled by Credible, mortgage rates for home purchases have fallen for three terms and remained unchanged for one term since last Friday.
- 30-year fixed mortgage rates: 4.375%, unchanged
- 20-year fixed mortgage rates: 4.250%, down from 4.375%, -0.125
- 15-year fixed mortgage rates: 3.500%, down from 3.625%, -0.125
- 10-year fixed mortgage rates: 3.375%, down from 3.500%, -0.125
Rates last updated on March 21, 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: Mortgage rates for longer terms have reached — and surpassed — the 4% mark this year much sooner than some experts originally predicted. Despite these increases, buyers can still find opportunities to save, especially if they can manage a higher monthly payment. Rates for shorter terms continue holding at or below 3.5%, meaning buyers who lock in a rate today can save on interest and pay down their mortgages much sooner.
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 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.
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.
Factors that influence mortgage rates (and are in your control)
Many factors affect what mortgage interest rate you can qualify for, and some of them are within your control. Improving these factors could help you qualify for a lower interest rate.
- Credit score — Generally, the lowest interest rates go to borrowers with the highest credit scores.
- Debt-to-income ratio — DTI is a percentage that compares your total debts with your income. To calculate DTI, divide your monthly gross income by the total of all your monthly minimum debt payments. Generally, lenders prefer a DTI of 35% or less.
- Down payment amount — Generally, lenders (and many sellers) look favorably on a higher down payment amount. If you put down less than 20% of the home’s purchase price, many lenders will require you to pay for private mortgage insurance, which protects the lender (not you) if you fail to repay the mortgage.
- Home location/price — Interest rates can vary depending on what state you live in and where in the state you’re buying. Likewise, if you need to borrow a lot more than average (a jumbo loan) or very little, you may get a higher interest rate.
- Repayment term — The lowest rates typically come with 10- or 15-year terms, while 30-year terms usually have the highest interest rates.
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 firstname.lastname@example.org and your question might be answered by Credible in our Money Expert column.
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.