The big slide: 3 key mortgage rates fall | Oct. 28, 2021

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Based on data compiled by Credible, mortgage rates fell for three key terms since yesterday, including for 30-year rates, the most common mortgage term.

• 30-year fixed mortgage rates: 2.940%, down from 3.125%, -0.185
• 20-year fixed mortgage rates: 2.750%, up from 2.625%, +0.125
• 15-year fixed mortgage rates: 2.250%, down from 2.375%, -0.125
• 10-year fixed mortgage rates: 2.125%, down from 2.375%, -0.250

Rates last updated on Oct. 28, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

What this means: With 30-year interest rates sliding just below 3%, homebuyers who lock in a rate today could secure long-term interest savings with the lowest available monthly mortgage payments. And the quarter-percent plunge in 10-year mortgage rates puts that term back on top as the best option for buyers who want to minimize total interest costs over the life of their loans. Only 20-year rates rose today, marking the first time in 18 days that all four key mortgage rates changed in the same day.

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 fell for three key terms today, including 30-year rates. The average mortgage refinance rate dipped to 2.516%, the lowest it’s been since Oct. 5. If you’re considering refinancing an existing home, check out what refinance rates look like:

• 30-year fixed refinance rates: 2.940%, down from 3.125%, -0.185
• 20-year fixed refinance rates: 2.750%, unchanged
• 15-year fixed refinance rates: 2.250%, down from 2.375%, -0.125
• 10-year fixed refinance rates: 2.125%, down from 2.375%, -0.250

Rates last updated on Oct. 28, 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.

How does the Federal Reserve affect mortgage rates?

The Federal Reserve System — or "The Fed," as it’s commonly called — is the United States’ central bank. It’s tasked with taking steps to keep the economy safe, stable, and flexible. Consequently, the Fed controls the U.S. money supply and short-term interest rates, and sets the Fed funds rate, which is the rate that banks apply when borrowing from each other overnight. 

But the Fed 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, 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. When the Fed buys a lot of mortgage-backed securities, it creates demand in the market, and lenders can make money even if they offer lower mortgage rates. So 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.

Current mortgage rates

Although mortgage interest rates remain relatively low, they’re still notably higher than they were at this time last year. Industry experts have predicted that rates will rise throughout the final quarter of 2021.

Current 30-year mortgage rates

The current interest rate for a 30-year fixed-rate mortgage is 2.940%. 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 2.750%. 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 2.250%. This is down from 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 2.125%. This is down 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.

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Rates last updated on Oct. 28, 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 mixed compared to this time last week.

• 30-year fixed mortgage rates: 2.940%, down from 3.125% last week, -0.185
• 20-year fixed mortgage rates: 2.750%, the same as last week
• 15-year fixed mortgage rates: 2.250%, down from 2.375% last week, -0.125
• 10-year fixed mortgage rates: 2.125%, the same as last week

Rates last updated on Oct. 28, 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’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.

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.

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 is partnered with a home insurance broker. If you're looking for a better rate on home insurance and are considering switching providers, consider using an online broker. You can compare quotes from top-rated insurance carriers in your area — 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.