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In general, refinance rates for mortgage were varied with one notable rate increasing.
The average rate nationwide for a 15-year fixed refinance stay the same, while 30-year fixed-rate refinances grew. At the same time, average rates for 10-year fixed refinances saw a decrease.
Refinancing rates are constantly fluctuating. However, they’re still near lows that we’ve never seen before. For those looking to refinance their existing mortgage, this may possibly be the right move to lock in a great deal on an interest rate.
The average mortgage refinance rates are as follows:
- 30-year fixed refinance rates are averaging 3.36%
- Today, the average 15-year fixed refinance rate is 2.61%
- The average 10-year fixed refinance rates is 2.48%
30-Year Fixed Refinance Rates
Right now, the average 30-year, fixed refinance has an interest rate of 3.36%, an increase of 4 basis points from a week ago.
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 2.61%, unmoved 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 2.48%, a decrease of 4 basis points from what we saw last week.
Monthly payments with a 10-year refinance term would cost a significant amount more per month than you would with a 15-year term, but you’ll pay less interest in the long term.
How Mortgage Refinance Rates Have Changed
But rates should still remain favorable for borrowers throughout this year. Some experts predict mortgage rates will stay low, and that much later this year it’s more likely that rates will make steady gains. Whatever ends up happening with refinance rates in the long term will depend on broad factors, such as inflation and our economic recovery.
The table below shows refinance rates trends from the past week. This information is provided by Bankrate, which compiles data collected from lenders across the country. Bankrate is owned by Nextadvisor’s parent company, Red Ventures.
|30-year mortgage refinance rate||3.36%||3.32%||+0.04|
|15-year fixed refinance rate||2.61%||2.61%||N/C|
|10-year fixed refinance rate||2.48%||2.52%||-0.04|
Rates as of April 6, 2021.
Factors Behind Today’s Refinance Rates
There’s no single factor that determines mortgage refinance rates. Instead, a variety of personal components and broader economic factors come into play.
These factors include:
- Type of refinance loan
- Amount of equity in your home
- U.S. Treasury bond Yields
- Individual circumstances: Credit history, income, and debt
- Condition of the economy
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.
Why Are Refinance Rates Increasing?
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 Lowest Refinance Rate
Mortgage refinance rates vary depending on your personal financial situation. If you have a higher credit score and lower DTI ratios will usually receive a greater markdown on the mortgage refinance rates they are offered.
Your situation isn’t the only thing that will impact the interest rates you’re offered. The amount of equity you have in the property also comes into play. Having at least 20% equity in your property is ideal.
Even the mortgage itself can determine what your refinance interest rate will be. A loan with a shorter repayment term generally has better refinance rates than loans with longer repayment terms, all else equal. The type of refinance loan you need makes a difference in the refinance rate. Cash-out mortgage refinance loans have larger refinance rates because they are viewed as more risky.
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.
National lenders provide this mortgage rate information to Bankrate.com. It is possible the mortgage rates we reference has changed since this was published.
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