Looking for today's lowest mortgage rate? Try 10-year terms at 5.875 percent | July 31, 2023

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Check out the mortgage rates for July 31, 2023, which are largely unchanged from Friday. (Credible)

Based on data compiled by Credible, mortgage rates for home purchases have remained unchanged for three key terms, while another has fallen since Friday.

Rates last updated on July 31, 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 purchase rates have continued their pattern of 15-, 20-, and 30-year terms staying above 7%, while rates for 10-year terms stay within the 5% range. Today, rates for 30-year terms have edged down to 7.5%. Meanwhile, rates for 15- and 20-year terms have remained the same at 7.125% and 8%, respectively. Additionally, rates for 10-year terms have remained as the day’s lowest rate at 5.875%. Borrowers interested in maximizing their interest savings should consider 10-year terms. Homebuyers who would rather have a smaller monthly payment should instead consider 30-year terms, as they have the lowest rates out of the two longer 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 for one key term, while three others have remained unchanged since Friday.

Rates last updated on July 31, 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 for 20- and 30-year terms have continued to remain above 6%, while 10- and 15-year terms stay within the 5% range. Today, rates for 20-year terms dropped by over a quarter of a percentage point to 6.5%. Meanwhile, rates for 10- and 15-year terms have remained at 5.875%, today’s lowest rate. Additionally, rates for 30-year terms have remained stable at 6.875%. Homeowners looking to refinance into a lower monthly payment should consider 20-year terms, as their rates are over a quarter of a percentage point lower than those of 30-year terms. Borrowers who would rather save the most on interest should instead consider 10- or 15-year terms.

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 to get low mortgage rates

If you want to get the lowest possible monthly mortgage payment, taking the following steps can help you secure a lower rate on your home loan:

It’s also a good idea to compare rates from different lenders to find the best rate for your financial goals. According to research from Freddie Mac, borrowers can save $1,500 on average over the life of their loan by shopping for just one additional rate quote — and an average of $3,000 by comparing five rate quotes. 

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.