Mortgage rates have undergone significant changes over the years. In 1981, Freddie Mac recorded the highest annual average rate of 16.63%. However, in 2019, the average interest rate for a 30-year fixed-rate mortgage was 3.94%. In 2021, the average rate dropped further to 2.96%, marking the lowest annual average in 30 years. Homeowners who have mortgages from 2019 and earlier could potentially save money by refinancing with one of today’s lower interest rates.

Credible calculates average mortgage rates and mortgage refinance rates based on information provided by partner lenders who pay compensation. Assuming a borrower has a 740 credit score, a 20% down payment, and is borrowing a conventional loan for a single-family home that will be their primary residence, Credible provides an idea of current average rates. However, it’s important to note that the rate a borrower actually receives can vary based on several factors.

When choosing a mortgage lender, it’s crucial to compare rates and terms from multiple lenders. Adding just one quote to a mortgage search could save a borrower $1,500 over the life of a loan, according to a Freddie Mac study. Mortgage brokers can help find a loan deal, but borrowers should be aware that they typically charge a small percentage of the loan for their services. Exploring mortgage offerings from banks and financial institutions, asking for referrals from friends and family, and using Credible’s free online tool to compare prequalified rates from multiple lenders can all help find the right mortgage rate. Remember, choosing a mortgage lender and mortgage that work best for a borrower’s needs and financial situation is critical.





Mortgage Disclosure: Please note that mortgage rates can vary based on several factors, including credit score, loan amount, down payment, and property location. The rates mentioned in this article are for informational purposes only and do not constitute an offer for credit. Borrowers should consult with a licensed mortgage professional and review all loan documents and disclosures before making any decisions related to mortgage financing.