Today's mortgage rates fall, pulling 10- and 15-year terms below 6% | June 16, 2023

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Check out the mortgage rates for June 16, 2023, which are largely trending down from yesterday. (Credible)

Based on data compiled by Credible, mortgage rates for home purchases have fallen for three key terms and risen for one other since yesterday.

30-year fixed mortgage rates: 6.375%, down from 6.625%, -0.250
20-year fixed mortgage rates: 6.125%, down from 6.375%, -0.250
15-year fixed mortgage rates: 5.750%, down from 6.000%, -0.250
10-year fixed mortgage rates: 5.875%, up from 5.625%, +0.250

Rates last updated on June 16, 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 begun to sink down for longer terms, returning to their lower rates from the beginning of this week. Conversely, rates for shorter terms have increased from the beginning of the week. Rates have risen for 10-year terms, jumping up by a quarter of a percentage point to 5.875%. Meanwhile, rates for 30-year terms have fallen by a quarter of a percentage point to 6.375%. Rates for 15- and 20-year terms have also dropped by a quarter of a percentage point, hitting 5.75% and 6.125%, respectively. Borrowers interested in maximizing their interest savings should consider today’s lowest rate, 15-year terms at 5.75%. Homebuyers who would rather have a lower monthly payment should instead consider 20-year terms, as their rates are a quarter of a percentage point lower than those of 30-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 risen for one key term and fallen for three more since yesterday.

30-year fixed-rate refinance: 6.490%, down from 6.500%, -0.010
20-year fixed-rate refinance: 6.125%, down from 6.375%, -0.250
15-year fixed-rate refinance: 5.625%, down from 5.875%, -0.250
10-year fixed-rate refinance: 5.750%, up from 5.625%, +0.125

Rates last updated on June 16, 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 stayed relatively the same from the beginning of this week for 10-, 20-, and 30-year terms. Meanwhile, rates for 15-year terms have gradually increased since the week begun. Today, rates have edged up for 10-year terms, hitting 5.75%. Meanwhile, rates for 30-year terms have dipped to 6.49%. Additionally, rates for 15- and 20-year terms have fallen by a quarter of a percentage point to 5.625% and 6.125%, respectively. Homeowners looking for a smaller monthly payment should consider 20-year terms over 30-year terms, as the rates for 20-year terms are more than a quarter of a percentage point lower. Borrowers who would rather save the most on interest should instead consider today’s lowest rate, 15-year terms at 5.625%.

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.

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.

How do I choose a mortgage lender?

A mortgage is likely the largest debt you’ll take on in life — one that will take decades to repay. So it’s critical to make sure you choose a mortgage lender and mortgage that work best for your needs and financial situation.

Here are some tips to help you choose a mortgage lender:

Comparison shop. Compare rates and terms from multiple lenders. Just as you comparison shop for less important purchases, you should compare offers from several lenders. A Freddie Mac study found that adding just one quote to your mortgage search could save you $1,500 over the life of a loan. Adding five could save you about $3,000. Credible makes it easy to compare your prequalified rates from multiple lenders.
Consider a mortgage broker. Mortgage brokers can do the legwork for you when it comes to finding a loan deal. But be aware that mortgage brokers typically make money by charging a small percentage of the loan for their services.
Leverage relationships. Explore mortgage offerings from banks and financial institutions you already do business with. Loyalty and familiarity may work in your favor in negotiating a good mortgage deal.
Look for referrals. Ask friends, family, coworkers and neighbors for referrals, and about their experiences with different lenders.

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.