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Check out the September 15, 2021 mortgage rates, which have been declining since yesterday. (iStock)
Based on data collected by Credible, mortgage rates have fallen largely since yesterday, and rates for ten- and fifteen-year terms have fallen below 2% for the first time in months. The average mortgage interest rate is 2.248%, the lowest since January 27, 2021.
- 30-year fixed mortgage rates: 2.750%, unchanged
- Fixed rates at 20 years: 2.375%, compared to 2,500%, -0.125
- Fixed rates at 15 years: 1.990%, less than 2,000%, -0.010
- 10-year fixed mortgage rates: 1.875%, less than 2,000%, -0.125
The rates were last updated on September 15, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
What does this mean: While rates remain at negotiable minimums in all terms, today 10- and 15-year rates appear as exceptional offers for buyers who want to minimize total interest costs. It is difficult to identify the factors that may have caused a current drop in the mortgage rate. But the first signs of a refrigeration market may appear as autumn approaches. Redfin reported in mid-August that the bidding war rate fell in July to the lowest level since January.
To find the best mortgage rate, start by using Credible, which can show you current rates and refinance:
Check the rates of various lenders so that you can make an informed decision about your home loan.
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Looking at current types of mortgage refinancing
Today’s mortgage refinancing rates have fallen on two key terms, while they have remained stable for two more. It should be noted that ten-year mortgage refinancing rates reached a record low of 1.875%. If you are thinking of refinancing an existing home, check out the refinancing rates aspect:
- Fixed refinancing rates at 30 years: 2.750%, no changes
- Fixed refinancing rates at 20 years: 2.375%, compared to 2,500%, -0.125
- Fixed refinancing rates at 15 years: 2,000%, no changes
- 10-year fixed refinancing rates: 1.875%, less than 2,000%, -0.125
The rates were last updated on September 15, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
A site like Credible can be of great help when you are ready to compare mortgage refinancing loans. Credible lets you see pre-qualified rates for conventional mortgages from multiple lenders in minutes. Visit Credible today To start.
Credible has received a 4.7 star rating (out of a possible 5.0) on Trustpilot and more than 4,500 customer reviews that have safely compared pre-rated rates.
Factors Influencing Mortgage Rates (and Out of Your Control)
There are many factors that influence the interest rate that a lender can offer you. Some, such as your credit score, are in your control. But others you have no ability to affect, such as …
- The economy – During financial recessions, the Fed may lower interest rates to try to stimulate the economy. And when the economy is doing well, interest rates can rise.
- Inflation – Interest rates tend to move with inflation. When the overall cost of goods and services increases, interest rates are also likely to rise.
- The Federal Reserve – The Fed may choose to lower interest rates to stimulate a struggling economy or raise rates in an attempt to curb inflation.
- Macro employment trends – When many people are out of work, as they were during the pandemic lockout months, mortgage rates can go down. As employment increases, interest rates usually rise.
Current mortgage rates
Current mortgage rates remain well below 3%, with ten-year fixed rates at their lowest level since June and 15-year rates reaching their lowest level since January.
Current 30-year mortgage rates
The current interest rate on a 30-year fixed rate mortgage is 2.750%. This is the same as yesterday. Thirty years is the most common repayment term for mortgages, because 30-year mortgages usually give you a lower monthly payment. But they usually also come with higher interest rates, which means that in the end you will pay more interest over the life of the loan.
Current 20-year mortgage rates
The current interest rate on a 20-year fixed-rate mortgage is 2.375%. This has been falling since yesterday. Shortening the repayment period by just 10 years can mean that you will get a lower interest rate and pay less total interest over the life of the loan.
Current 15-year mortgage rates
The current interest rate on a 15-year fixed-rate mortgage is 1.990%. This has been falling since yesterday. Fifteen-year mortgages are the second most common mortgage term. A 15-year mortgage can help you get a lower rate than a 30-year term and pay less interest over the life of the loan, while maintaining the management of monthly payments.
Current ten-year mortgage rates
The current interest rate on a 10-year fixed-rate mortgage is 1.875%. This has been falling since yesterday. While it’s less common than 30- and 15-year mortgages, a 10-year fixed-rate mortgage usually gives you lower interest rates and lifetime interest costs, but a higher monthly mortgage payment.
You can explore your mortgage options in minutes by visiting Credible to compare the current rates of various lenders offering mortgage refinancing and home loans. Check out Credible and ask yourself today and check out the current refinancing rates via the link below.
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The rates were last updated on September 15, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
How credible mortgage rates are calculated
Changing economic conditions, political decisions of central banks, investor sentiment and other factors influence the movement of mortgage rates. Average mortgage rates and mortgage refinancing rates are calculated based on information provided by partner lenders who pay compensation to Credible.
The fees assume that a borrower has a score of 740 credits and is on loan for a single-family home that will be their primary residence. The rates also do not involve any discount point (or very low) and an initial payment of 20%.
Credible mortgage rates will only give you an idea of the current average rates. The rate you receive may vary depending on several factors.
How mortgage rates have changed
Today, mortgage rates have dropped compared to that date last week.
- 30-year fixed mortgage rates: 2.750%, up from 2.875% last week, -0.125
- Fixed rates at 20 years: 2.375%, up from 2,500% last week, -0.125
- Fixed rates at 15 years: 1.990%, up from 2,000% last week, -0.010
- 10-year fixed-rate mortgage: 1.875%, up from 2,000% last week, -0.125
The rates were last updated on September 15, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
These rates are based on the assumptions shown here. Actual rates may vary.
If you are trying to find the right type for your mortgage or want to refinance an existing home, consider using Credible. You can use Credible’s free online tool to easily compare various lenders and see pre-qualified rates in minutes.
With more than 4,500 reviews, Credible maintains a “excellent” Trustpilot score.
Factors that influence mortgage rates (and are under your control)
There are many factors that affect the mortgage interest rate you can qualify for and some of them are under your control. Improving these factors can help you opt for a lower interest rate.
- Credit score – Generally, the lowest interest rates correspond to the borrowers with the highest credit scores. Improving your credit score before applying for a mortgage could help you get a lower interest rate than you would get with a lower credit score.
- Debt-to-income ratio: DTI is a percentage that compares your total debt to your income. To calculate the DTI, divide your gross monthly income by the total of all minimum monthly debt payments. A higher DTI can be a sign that it can cost you to make a mortgage payment. A lower DTI tells lenders that you have more disposable income to pay off a mortgage payment. In general, lenders prefer a DTI of 35% or less.
- Initial amount An down payment reduces the amount you have to borrow, which means you run less risk from the lender’s money. In general, lenders (and many sellers) favorably consider a higher starting amount. If you leave less than 20% of the purchase price of the home, many lenders will require you to pay private mortgage insurance, which protects the lender (not you) if you do not pay the mortgage.
- Home location / price – Interest rates may vary depending on the state you live in and where you are buying. Similarly, if you need to borrow much more than average (a jumbo loan) or very little, you may be able to get a higher interest rate.
- Repayment period – Historically, the longer the repayment period of a loan, the higher the interest rate. The lowest rates usually come with ten- or fifteen-year terms, while the 30-year terms usually have the highest interest rates. If you can change the larger monthly payment that leads to a shorter term, you could get a lower interest rate and significant interest savings over the life of the loan.
Do you want to reduce your home insurance rate?
A home insurance policy can help cover unexpected costs you may incur during home ownership, such as structural damage and destruction or theft of personal property. Coverage can vary widely between insurers, so it is advisable to do a search and compare policy budgets.
Credible has a partnership with a home insurance broker. You can compare for free home insurance quotes through Credible partner here. It’s fast, easy and the whole process can be completed completely online.
Do you have any questions related to finance, but don’t know who to ask? Email The Credible Money Expert at [email protected] and Credible may answer your question in our Money Money column.
As a credible authority on mortgages and personal finance, Chris Jennings has addressed issues including mortgage lending, mortgage refinancing and more. He has been an editor and editorial assistant in the online personal finance space for four years. His work has been featured on MSN, AOL, Yahoo Finance and more.