We want to help you make more informed decisions. Some links on this page – clearly marked – may lead you to an affiliate website and result in us earning a referral commission. For more information, see How we make money.
In general, mortgage refinancing rates have varied with a notable rise in interest rates.
The nationwide median rate for a 15-year fixed rate refinance has seen a downward trend, while the 30-year fixed rate refinance has increased. At the same time, the average interest rates for 10-year fixed refinancing fell.
Refinancing rates fluctuate constantly. However, they are currently exceptionally low. For those looking to refinance their existing mortgage, this may be the perfect time to hit a record low.
The average refinancing rates for mortgages are as follows:
30-year fixed refinancing rates
Average at the moment 30 years of fixed refinancing has an interest rate of 3.34%, an increase of 2 basis points over the previous week.
You can use ours Mortgage calculator to get an idea of what your monthly payments will be and to understand how much you could save if you made additional payments. Our mortgage calculator also shows you how much interest you will be charged over the life of the loan.
15 year fixed rate refinancing
To the 15 years of fixed refinancing We’re seeing an average rate of 2.60%, down 1 basis point from the previous week.
The monthly payments for a 15 year refinancing loan are higher than for a 30 year refinancing at the same interest rate. However, a shorter loan term can save you thousands of dollars in interest over the life of the loan.
10 year fixed rate refinancing
The average 10 year fixed refinancing rate is 2.49%, a 3 basis point decrease from a week ago.
Monthly payments with a 10 year refinancing term would cost significantly more per month than a 15 year term, but you will pay less interest in the long run.
How mortgage refinancing rates have changed
However, interest rates should remain cheap for borrowers this year. Some experts predict that mortgage rates will remain lowand will only record constant growth in the second half of the year. What happens to refinancing rates over the long term will depend on general factors such as inflation and our economic recovery.
The following table shows how the refinancing rates have changed in the past week. This information is provided by Bankrate, which gathers data gathered from lenders across the country. Bankrate is owned by Nextadvisor’s parent company, Red Ventures.
Prices from April 7th, 2021.
What influences today’s refinancing rates?
There is no single factor that determines mortgage refinancing rates. Instead, a variety of personal components and general economic factors play a role.
These factors include:
- Type of refinancing loan
- The amount of equity in your home
- US Treasury Bond Yields
- Inflation rates
- Personal Finance: Credit Score and Debt-To-Income Ratio
- State of the economy
Refinancing Rate Predictions
Refinancing rates can move up or down on a daily basis due to a variety of factors. But the general trend will be rising interest rates in the coming months.
With refinancing rates hitting record lows a few months ago, there was little room for them to move other than up. And that is exactly what interest rates have been doing since January. It is important to note that, from a historical perspective, refinancing rates are still exceptionally low despite the recent spike. As vaccine distribution continues to pick up pace and the economy re-opens, refinancing rates still have plenty of room for growth.
Is now the right time to refinance?
Last year was a historically excellent time to refinance as interest rates had never been lower. However, since January mortgage rates have risen for the first time since last summer and exceeded the 3% threshold.
Although the days of record-breaking refinance rates are behind us, this is still an exceptional time to refinance for many homeowners. If you can secure today’s interest rates, which are north of 3%, you can get a deal with an interest rate low almost all the time.
So there is still time to save with a refinancing, but this window will be closed. Many experts believe that interest rates will continue to rise when the economy returns to pre-pandemic levels next year.
Why are refinancing rates increasing?
Refinancing rates have risen steadily over the past few months.
As the economy continues to recover, expect interest rates to rise. While a full recovery may not occur in the near future, interest rates have risen in anticipation of a bright economic future. The new economic round has increased the likelihood of a spike in inflation in the minds of many investors, which has boosted government bond yields. And mortgage rates usually move in parallel with government bonds.
With more and more people being vaccinated every day, there is hope that the worst is behind us. So the days with the lowest rates ever seem to be over. Even if refinancing rates rise sharply, they will still remain low. For many homeowners, now is a good time to refinance, even if interest rates aren’t as low as they were a few months ago.
How to qualify for the lowest refinance rate
Mortgage refinancing rates vary depending on your personal financial situation. People with higher credit scores and lower DTI rates can typically get a lower refinancing mortgage rate.
Your personal finances aren’t the only consideration that will affect your refinance rate. The value of your home compared to your loan balance also plays a role in the decision. You want to have at least 20% equity or a loan-to-value ratio of 80% or less.
Even the mortgage itself affects your refinance rate. A loan with a shorter repayment term usually has lower interest rates than a loan with a longer term. If you want to get cash out of your home with a withdrawal refinancing, you will be charged a higher interest rate compared to other types of refinancing.
How we got these awards
The interest rates quoted by us are averages from Bankrate and are calculated after the end of the previous business day. The lenders featured in the Bankrate.com Site Average tables are not the same every day.
National lenders provide this mortgage rate information to Bankrate.com. It is possible that the mortgage rates we are referring to have changed since their publication.