Mortgage rates jumble: Amid mixed movement, 30-year rates dip | Dec. 8, 2021

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 who compensate us for our services, all opinions are our own.

Based on data compiled by Credible, mortgage rates are a wildly mixed bag compared to yesterday, with one key rate edging down, two rising and one holding steady.

• 30-year fixed mortgage rates: 3.125%, down from 3.190%, -0.065
• 20-year fixed mortgage rates: 2.875%, up from 2.750%, +0.125
• 15-year fixed mortgage rates: 2.375%, unchanged
• 10-year fixed mortgage rates: 2.375%, up from 2.250%, +0.125

Rates last updated on Dec. 8, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

What this means: Today’s volatility is fairly common in the mortgage market, but still likely points to further rate increases on the horizon. Buyers who want to get ahead of coming increases may want to lock in their 30-year mortgage today, as rates for the term haven’t dropped below 3% in the past 20 days. 

These rates are based on the assumptions shown here. Actual rates may vary.

To find the best mortgage rate, start by using Credible, which can show you current mortgage and refinance rates:

• Check out mortgage refinance rates
• Compare home purchase rates

Browse rates from multiple lenders so you can make an informed decision about your home loan.

Credible, a personal finance marketplace, has 4,500 Trustpilot reviews with an average star rating of 4.7 (out of a possible 5.0).

Looking at today’s mortgage refinance rates

Today’s mortgage refinance rates were volatile compared to yesterday, with rates for the longest term edging down, the shortest moving upward, and middle terms holding steady. If you’re considering refinancing an existing home, check out what refinance rates look like:

• 30-year fixed-rate refinance: 3.125%, down from 3.190%, -0.065
• 20-year fixed-rate refinance: 2.875%, unchanged
• 15-year fixed-rate refinance: 2.375%, unchanged
• 10-year fixed-rate refinance: 2.375%, up from 2.250%, +0.125

Rates last updated on Dec. 8, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

A site like Credible can be a big help when you’re ready to compare mortgage refinance loans. Credible lets you see prequalified rates for conventional mortgages from multiple lenders all within a few minutes. Visit Credible today to get started.

Credible has earned a 4.7-star rating (out of a possible 5.0) on Trustpilot and more than 4,500 reviews from customers who have safely compared prequalified rates.

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

Mortgage interest rates can be fixed (meaning they remain the same for the life of your loan) or variable (the rate can change after an initial period). The type of mortgage you choose will affect your interest rate.

Interest rates for fixed-rate mortgages tend to be higher than the initial interest rate for adjustable rate mortgages, or ARMs. But they don’t change, so you’ll know at the beginning of your loan exactly how much interest you’ll pay over the life of your mortgage.

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.

It’s common for homeowners with adjustable-rate mortgages to refinance into fixed-rate loans when their introductory period is about to end.

Current mortgage rates

Today’s average mortgage rate across all terms is 2.688%. 

Current 30-year mortgage rates

The current interest rate for a 30-year fixed-rate mortgage is 3.125%. This is down from yesterday. Thirty years is the most common repayment term for mortgages because 30-year mortgages typically give you a lower monthly payment. But they also typically come with higher interest rates, meaning you’ll ultimately pay more in interest over the life of the loan.

Current 20-year mortgage rates

The current interest rate for a 20-year fixed-rate mortgage is 2.875%. This is up from yesterday. Shortening your repayment term by just 10 years can mean you’ll get a lower interest rate — and pay less in total interest over the life of the loan.

Current 15-year mortgage rates

The current interest rate for a 15-year fixed-rate mortgage is 2.375%. This is the same as yesterday. Fifteen-year mortgages are the second most-common mortgage term. A 15-year mortgage may help you get a lower rate than a 30-year term — and pay less interest over the life of the loan — while keeping monthly payments manageable. 

Current 10-year mortgage rates

The current interest rate for a 10-year fixed-rate mortgage is 2.375%. This is up from yesterday. Although less common than 30-year and 15-year mortgages, a 10-year fixed rate mortgage typically 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 current rates from various lenders who offer mortgage refinancing as well as home loans. Check out Credible and get prequalified today, and take a look at today’s refinance rates through the link below.

Thousands of Trustpilot reviewers rate Credible "excellent."

Rates last updated on Dec. 8, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

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 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 will only give you an idea of current average rates. The rate you receive can vary based on a number of factors.

How mortgage rates have changed

Today, mortgage rates are largely the same as this time last week.

• 30-year fixed mortgage rates: 3.125%, the same as last week
• 20-year fixed mortgage rates: 2.875%, up from 2.750% last week, +0.125
• 15-year fixed mortgage rates: 2.375%, the same as last week
• 10-year fixed mortgage rates: 2.375%, the same as last week

Rates last updated on Dec. 8, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

If you’re trying to find the right rate for your home mortgage or looking to refinance an existing home, 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.

With more than 4,500 reviews, Credible maintains an "excellent" Trustpilot score.

Why do mortgage rates fluctuate?

If you follow mortgage interest rates for a few days, you’ll likely notice that rates can fluctuate by a bit — or a lot — from day to day. Many factors drive these fluctuations. Here are some of the most common reasons why mortgage rates move frequently:

Employment patterns

The job market has a widespread effect on the nation’s overall economic health. When more people are out of work, the economy suffers. When more people are fully employed, the economy benefits. The employment rate is also 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.

The Fed also buys and sells mortgage-backed securities, or MBS — a package of similar loans that a major mortgage investor buys and then resells to investors in the bond market. Rates tend to be lower when the Fed is doing a lot of buying. When the Fed buys fewer MBS, demand falls and rates will likely rise. Similarly, when the Fed raises the Fed fund rate, mortgage rates will also increase.

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.

Those global influences contribute to the overall health of the U.S. economy. When the domestic economy is doing well, interest rates rise. And when the American economy falters, interest rates fall.

Looking to lower 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 stolen personal property. Coverage can vary widely among insurers, so it’s wise to shop around and compare policy quotes.

Credible has a partnership with a home insurance broker. You can compare free home insurance quotes through Credible's partner here. It's fast, easy, and the whole process can be completed entirely online. 

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.