Still time to save: Today’s mortgage rates hold steady | Jan. 26, 2023

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Check out the mortgage rates for Jan. 26, 2023, which are unchanged from yesterday. (Credible)

Based on data compiled by Credible, mortgage rates for home purchases remained unchanged across all terms since yesterday.

• 30-year fixed mortgage rates: 6.500%, unchanged
• 20-year fixed mortgage rates: 6.375%, unchanged
• 15-year fixed mortgage rates: 6.125%, unchanged
• 10-year fixed mortgage rates: 6.375%, unchanged

Rates last updated on Jan. 26, 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 rates for home purchases rested across all key terms today. Borrowers who can manage a higher monthly mortgage payment will find greater interest savings with a 15-year term, which remains the lowest available at 6.125%. Buyers may want to take advantage of this pause and lock in a rate 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 remained unchanged for three key terms and fallen for one key term since yesterday.

• 30-year fixed-rate refinance: 6.500%, unchanged
• 20-year fixed-rate refinance: 6.125%, down from 6.375%, -0.250
• 15-year fixed-rate refinance: 6.000%, unchanged
• 10-year fixed-rate refinance: 6.250%, unchanged

Rates last updated on Jan. 26, 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: Twenty-year mortgage refinance rates plunged a quarter of a percentage point today, while rates for all other repayment terms held steady. Homeowners looking to refinance may want to consider 15-year rates, as they’re currently half a percentage point lower than rates for a 30-year refinance. But homeowners who want to refinance into a longer repayment term should stick with a 20-year refinance.

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.

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.

Getting a mortgage vs. renting

If you’re wondering if you should buy a house or continue renting, no single answer is right for everyone. Whether you should buy or continue renting depends on many factors, including your personal financial situation, long-term goals, preferred lifestyle and market conditions in your area.

Buying a home does come with some distinct advantages that you can’t get from renting, including ...

• You can build equity. Home equity can help you build long-term wealth.
• You can personalize your living space more than with a rental that someone else owns.
• Owning a home can provide intangible benefits like pride of ownership, a sense of community and stability.
• Your mortgage payment may be less than rents in your area.
• Mortgage interest is usually tax deductible.

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.