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Good news: Today's 30-year mortgage rates dive below 8 percent | Feb. 15, 2023

By Maddie Lloyd
Published  February 15, 2023 11:59am CST
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 Feb. 15, 2023, which are mixed from yesterday. (Credible)

Based on data compiled by Credible, mortgage rates for home purchases are mixed today, with one key rate falling, one rising and two others holding steady since yesterday.

Rates last updated on Feb. 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: Rates for a 30-year mortgage fell more than a quarter of a percentage point today, bringing this popular repayment term back below 8%. Meanwhile, 20-year rates rose nearly a full percentage point and 10- and 15-year rates held steady. Buyers who want a longer repayment term may want to lock in a 30-year rate today. A rate lock could hold their mortgage rate steady at under 8%, regardless of future increases. But buyers looking to save the most on interest may want to consider 10- or 15-year rates, which are the lowest available at 6.5%.

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 for two key terms and remained unchanged for two other terms since yesterday.

Rates last updated on Feb. 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: Homeowners looking to refinance to a longer repayment term have another opportunity to save on interest today with 30-year rates, which are down nearly a full percentage point since yesterday. But homeowners who want to save the most on interest may want to consider 15-year rates, which held steady today at 5.375%. Fifteen-year refinance terms offer a low interest rate and the opportunity to be mortgage-free sooner.

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.

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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 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. 

Fixed vs. adjustable-rate mortgages: How they affect interest costs 

Interest rates for fixed-rate mortgages don’t change over the life of the loan, but tend to be higher than the initial interest rate for adjustable rate mortgages, or ARMs.

Initial interest rates for ARMs are typically lower than fixed-rate mortgages. But after the end of an introductory period, your interest rate will change — and it could increase significantly. Introductory periods can vary from several months to a year or a few years. After the introductory period, your interest rate will be based on an index your lender specifies. ARMs may or may not cap how much your interest rate can increase.

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.