Savings window opens: Today’s 30-year mortgage rates tumble to 5.99 percent | Dec. 22, 2022

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

• 30-year fixed mortgage rates: 5.990%, down from 6.500%, -0.510
• 20-year fixed mortgage rates: 5.875%, unchanged
• 15-year fixed mortgage rates: 5.375%, down from 5.875%, -0.500
• 10-year fixed mortgage rates: 5.500%, down from 5.875%, -0.375

Rates last updated on Dec. 22, 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 a 30-year mortgage plunged more than half a point today, bringing this popular repayment term just below 6%. Meanwhile, 10- and 15-year rates also fell significantly, and 20-year rates held steady. With rates for all repayment terms under 6%, buyers who want a longer repayment term may want to lock in a rate today, ahead of future increases. 

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 three key terms and held steady for one other term since yesterday.

• 30-year fixed-rate refinance: 5.990%, down from 6.500%, -0.510
• 20-year fixed-rate refinance: 5.875%, unchanged
• 15-year fixed-rate refinance: 5.375%, down from 5.875%, -0.500
• 10-year fixed-rate refinance: 5.500%, down from 5.875%, -0.375

Rates last updated on Dec. 22, 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 looking to refinance into a longer repayment term have an opportunity to lock in a 30-year interest rate below 6% today. But homeowners who can manage a larger monthly payment may find 15-year rates attractive, as they’re the lowest available at 5.375%. Though shorter terms come with higher monthly payments, they allow homeowners to become 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.

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.

Why do mortgage rates fluctuate?

Here are some of the most common reasons why mortgage rates move frequently:

Employment patterns

The employment rate is an indicator of demand for mortgages. When more people are unemployed, fewer people will be looking to get a mortgage and buy a home — and that lower demand will push interest rates down. When the employment rate improves, demand for mortgages will likely keep pace. And as demand for mortgages rises, so will mortgage interest rates.

The bond market

Because bonds are a lower-risk type of investment, demand for bonds can increase when investors are wary of other investment vehicles, or fearful of the overall state of the economy. Increased demand for bonds causes their price to rise and their earnings – called their yield – to fall.

When bond yields fall, consumer interest rates generally do as well, including mortgage interest rates. When investors feel more confident about the economy, demand for bonds declines, bond prices drop and yields rise. And interest rates tend to follow.

Federal Reserve System

"The Fed," as it’s commonly called, is the United States’ central bank. But it doesn’t actually set mortgage rates. Rather, multiple things the Fed does influence mortgage rates. For example, while mortgage rates don’t mirror the Fed funds rate – the rate banks apply when borrowing lending money to each other overnight – they do tend to follow it. If that rate rises, mortgage rates typically rise in tandem.

Global economy

Global banking systems and economies are closely interconnected. When economies in other parts of the world – especially Europe and Asia – experience a downturn, it affects investors and financial institutions in the United States. And, when foreign economies are doing well, they may attract more American investors – and divert those investment dollars out of the U.S. economy.

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.

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.