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Savings window opens: 30-year mortgage rates hit lowest levels in 6 days | Sept. 30, 2022

By Chris Jennings
Published  September 30, 2022 1:58pm CDT
Personal Finance
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Check out the mortgage rates for Sept. 30, 2022, which are largely up from yesterday. (Credible)

Based on data compiled by Credible, mortgage refinance rates have risen for three key terms and fallen for one other term since yesterday. 

Rates last updated on Sept. 30, 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: Rates for 30-year refinance terms fell today, bringing rates for this popular repayment term to their lowest level in six days. Meanwhile, rates for 20-year terms edged up, and 10- and 15-year rates rose significantly. With longer terms near 7%, homeowners looking to refinance may want to consider shorter terms for greater interest savings, ahead of future increases.

Today’s mortgage rates for home purchases

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

Rates last updated on Sept. 30, 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: Mortgage rates for 30-year terms fell slightly today, giving buyers an opportunity to save on interest. But rates for longer terms, which tend to be the most popular, remain well over 6%. With rates for 10- and 15-year loans more than half a percentage point lower than rates for longer terms, borrowers who can manage a higher monthly payment stand to realize the most interest savings with a shorter-term mortgage. But with 20-year rates higher than 30-year rates, buyers who want a longer repayment term should stick with a 30-year mortgage. 

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.

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.

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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.

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.

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.