Refi Rates Today, April 7, 2021 | Rate Increases

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In general, refinance rates for mortgage were varied with one notable rate going up.

The average rate nationwide for a 15-year fixed refinance slumped, while 30-year fixed-rate refinances moved higher. The average rate on 10-year fixed refinance mortgages trailed off.

Refinancing rates are constantly changing. However, they’re currently very low. For those looking to refinance their existing mortgage, this can be the perfect time to secure a record-low rate.

Refinance rates currently are:

Take a look at local refinance rates.

30-Year Fixed Refinance Rates

Right now, the average 30-year, fixed refinance has an interest rate of 3.34%, an increase of 2 basis points over the previous week.

You can use our mortgage calculator to price out your monthly mortgage payments and to understand how much you could save if you made extra payments. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.

15-Year Fixed-Rate Refinance

For 15-year fixed refinances we’re seeing an average rate of 2.60%, a decrease of 1 basis point from a week ago.

Monthly payments on a 15-year refinance loan can be a considerable amount more than what you’d get with a 30-year mortgage. However, a shorter loan term can help you build up equity in your home much more quickly.

10-Year Fixed-Rate Refinance

The average 10-year, fixed refinance rate is 2.49%, a decrease of 3 basis points from what we saw last week.

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.

Mortgage Refinance Rate Movement

The days of all-time historically low mortgage rates could be over. In recent weeks, mortgage rates inched above 3% for the first time since July, according to Freddie Mac’s weekly survey.

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. 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 where refinance rates were headed in the last week. This information is supplied by Bankrate, which aggregates data collected from lenders nationwide. Bankrate is owned by Nextadvisor’s parent company, Red Ventures.

Average refinance interest rates
ProductRateLast weekChange
30-year mortgage refinance rate3.34%3.32%+0.02
15-year fixed refinance rate2.60%2.61%-0.01
10-year fixed refinance rate2.49%2.52%-0.03

Rates as of April 7, 2021.

Take a look at mortgage refinance rates for a number of different loans.

How Are Refinance Rates Determined?

While there’s no single entity that establishes refinance rates, the Federal Reserve plays a big role. When it decides to ramp up its purchase of mortgage-backed securities, mortgage rates usually will fall. The Federal Reserve decisions can also impact inflation, which can influence the direction refinance rates are heading in.

However, there are personal factors that impact what refinance rate you are qualify for. How much equity you have in your home is important. Aim for at least 20% equity if you want to get the lowest possible rate. You also need to pay attention to your personal finances, and a high credit score and low debt-to-income ratio (DTI) will help you qualify for a lower rate.

Refinance Rate Predictions

On a day to day basis refinance rates can move up or down based on a wide variety of factors. But the general trend is going to be rising rates in the months to come.

With refinance rates hitting a record low just a few months ago, they had little place to move except up. And since January that is exactly what interest rates have done. It’s important to point out that from a historical perspective, refinance rates are still exceptionally low, even with the recent surge. So as the vaccine distribution continues to gain steam and the economy begins to open back up, refinance rates still have plenty of room to grow.

Is Now the Right Time to Refinance?

The past year was a historically excellent time to refinance because rates had never been lower. However, since January mortgage rates have crept up and crossed the 3% threshold for the first time since last summer.

Even though the days of record breaking refinance rates are behind us, this is still an exceptional time to refinance for many homeowners. If you can lock in today’s rates that are just north of 3%, you are getting a deal with a close to all-time low rate.

So there is still time to save with a refinance, but that window is closing. Many experts are predicting rates to continue to increase as the economy returns to pre-pandemic levels over the next year.

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 Get the Lowest Refinance Rate

Mortgage refinance rates vary depending on your personal financial situation. If you have a higher credit score and better DTI ratios will generally earn a larger reduction on their refinance rate.

Your personal finances aren’t the only thing that will impact the refinance 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.

The type of mortgage loan has an affect on your refinance interest rate. A loan with a shorter repayment term usually has lower interest rates than refinance loans with longer repayment terms, all else equal. Your interest rate is also affected by the type of refinance loan you plan on taking out. Cash-out refinance loans have increased 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

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