Lock-In a 30-Year Rate: Homebuyers Benefit from Decreased Mortgage Rates

According to Credible, mortgage rates for home purchases and refinances have changed since yesterday. Rates for 30-year, 20-year, and 15-year fixed-rate mortgages for home purchases have decreased, while rates for the 10-year term have remained the same. On the other hand, refinance rates have increased for the 30-year, 20-year, and 15-year fixed-rate mortgages but remain the same for the 10-year term.

Homebuyers who prefer a longer repayment term may want to take advantage of the decreased rates by locking in a 30-year rate. In contrast, homeowners who want to refinance into a longer repayment term may want to consider 20-year rates, which are lower than the 30-year term.

It's important to consider closing costs, such as appraisal, application, origination, and attorney fees, when thinking about a mortgage refinance or purchase.

Credible's mortgage 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 Fed controls the U.S. money supply and short-term interest rates and influences mortgage rates indirectly. 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.

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Source: https://www.foxbusiness.com/personal-finance/todays-mortgage-rates-march-10-2023