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Today, multiple closely followed refinance rates decreased.
Both 15-year fixed and 30-year fixed refinances saw their average rates sink. The average rate on 10-year fixed refinance mortgages also sank.
Mortgage refinance rates are constantly changing. However, they’re exceptionally low right now. For those looking to refinance their existing mortgage, this might be the perfect time to secure a record-low rate.
Take a look at today’s refinance rates:
- 30-year mortgage refinance rate: 3.14%
- Currently, the average 15-year fixed-rate refinance is 2.44%
- Currently, the average 10-year fixed-rate refinance is 2.39%
30-Year Fixed Refinance Rates
Right now, the average 30-year, fixed refinance has an interest rate of 3.14%, a decrease of 3 basis points over the previous week.
You can use our mortgage calculator to get an idea of what your monthly payments will be and to understand what the effects of making extra payments would be. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.
15-Year Fixed-Rate Refinance
Right now, average 15-year fixed refinance rates are 2.44%, a decrease of 4 basis points from a week ago.
Monthly payments on a 15-year refinance loan will be bigger compared to a 30-year refinance at the same rate. However, a shorter loan term can save you thousands of dollars interest over the life of the loan.
10-Year Fixed-Rate Refinance
The average 10-year, fixed refinance rate is 2.39%, a decrease of 3 basis points from a week ago.
Monthly payments with a 10-year refinance term would cost even more than what you’d pay on a 15-year loan. The upside is you’d end up paying even less interest over the life of the loan.
How Mortgage Refinance Rates Are Changing
But rates should still remain favorable for borrowers throughout this year. Some experts predict mortgage rates will stay low, and will only start seeing consistent gains in the second half of the year. Where refinance rates move in the long term will depend on broad factors, such as inflation and our economic recovery.
We determine refinance rate trends using data aggregated by Bankrate, which is owned by the same parent company as NextAdvisor. Lenders from across the country supply information to Bankrate, which is provided in the table below:
|30-year mortgage refinance rate||3.14%||3.17%||-0.03|
|15-year fixed refinance rate||2.44%||2.48%||-0.04|
|10-year fixed refinance rate||2.39%||2.42%||-0.03|
Rates as of April 27, 2021.
Factors Behind Today’s Refinance Rates
While there’s no single entity that sets refinance rates, the Federal Reserve has an outsized influence on them. When it decides to increase its purchase of mortgage-backed securities, you’ll typically see rates decline. The Federal Reserve’s policies also impact inflation, which can influence where rates are headed.
However, there is still a lot that is in your control when it comes to getting the best refinance rate. Your home’s equity is important. Having at least 20% equity will help you to get the lowest possible rate. Having your finances in order is also key, and a high credit score and low debt-to-income ratio (DTI) will help you qualify for a lower rate.
Refinance Rate Predictions
Mortgage refinance rates fluctuate from day to day and week to week, but in the coming months the overall trend is going to be rising mortgage rates.
In 2020, refinance rates fell to the lowest levels on record. The Federal Reserve bank would like to keep rates low in order to stimulate the economy, but in order to accomplish its goal we don’t need to have all-time low interest rates. And as unemployment continues to drop and people have more money to spend, inflation should rise. This is one factor that will push refinance rates higher over the long haul, even though they are currently favorably low.
Is Now the Right Time to Refinance?
Record low refinance rates drove a surge in mortgage refinancing over the past year. But as interest rates have rebounded from all-time lows, the number of borrowers looking to refinance has begun to shrink.
However, even with the downturn, the interest in mortgage refinancing remains stronger than it was before the pandemic drove rates into the ground. This is because refinance rates are hovering at just over 3%, which is still a historically good deal, even if it’s higher than the recent lows.
So as we turn our backs on record low interest rates, many borrowers are still able to save with a refinance. But many experts forecast that rates will continue to trend upward throughout 2021. So it’s reasonable to expect refinancing to get more expensive for borrowers as the year progresses.
What’s Driving Increasing Refinance Rates?
Over the past few months, we’ve seen a steady increase in refinance rates.
As the economy continues to recover, you should expect to see rates rise. Although a full recovery may not happen in the near term, rates have risen on the expectation of a bright economic future. The new round of stimulus has increased the likelihood of rising inflation in many investors minds, which has driven up Treasury bond yields. And mortgage rates typically move in tandem with Treasury bonds.
While refinance rates haven’t grown to levels beyond what many experts predicted, they have increased sooner than anticipated. Keep in mind, that from a historical perspective, refinance rates are still exceptionally low. So the window to save money with a mortgage refinance is still open for many homeowners.
How to Qualify for the Best Refinance Rate
Your finances have a big effect on the refinance rate you get. Fewer monthly debt payments and a higher credit score usually translates into a better interest rate.
But your personal financial situation isn’t the only factor that impacts the mortgage refinance rates you’re offered. The equity you have in the property also comes into play. You want to have at least 20% equity, or a loan-to-value ratio of 80% or less.
The type of mortgage loan has an affect on what your refinance rate will be. A loan with a shorter repayment term usually has lower refinance rates than refinance loans with longer repayment terms, all else equal. Your refinance rate is also impacted by the type of refinance you plan on taking out. Cash-out mortgage refinance loans have increased refinance interest rates because they are viewed as riskier.
How We Got These Rates
The rates we have included are averages provided by Bankrate and are calculated after the close of the previous business day. The lenders that the “Bankrate.com Site Average” tables include are not the same every day.
Bankrate receives this mortgage rate information from lenders across the nation, but it is possible that the referenced rates have changed since publishing this article.
Mortgage Interest Rates by Loan Type
Mortgage Refinance Rates
Home Purchase Rates
- 30 Year Fixed Mortgage Rates
- 20 Year Fixed Mortgage Rates
- 15 Year Fixed Mortgage Rates
- 10 Year Fixed Mortgage Rates