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Today, a few notable refinance rates sunk lower.
Both 15-year fixed and 30-year fixed refinances saw their average rates decline. The average rate on 10-year fixed refinance mortgages also decreased.
Mortgage refinance rates are constantly shifting. However, they’re exceptionally low right now. For those looking to refinance their existing mortgage, this may possibly be the perfect time to secure a record-low rate.
Take a look at today’s refinance rates:
- 30-year fixed refinance rates are averaging 3.30%
- Currently, the average 15-year fixed-rate refinance is 2.56%
- Currently, the average 10-year fixed-rate refinance is 2.46%
30-Year Fixed Refinance Rates
Right now, the average 30-year, fixed refinance has an interest rate of 3.30%, a decrease of 4 basis points over the previous week.
You can use our mortgage calculator to determine how much your mortgage will cost you every month 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 2.56%, a decrease of 7 basis points over the previous week.
Monthly payments on a 15-year refinance loan are tougher to fit into a monthly budget than a 30-year mortgage payment would be. 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 2.46%, a decrease of 6 basis points from the rate observed over the previous 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 during the back half of 2021 it’s more likely that rates will make steady gains. Where refinance rates move 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 supplied by Bankrate, which compiles data collected from lenders nationwide. Bankrate is owned by Nextadvisor’s parent company, Red Ventures.
|30-year mortgage refinance rate||3.30%||3.34%||-0.04|
|15-year fixed refinance rate||2.56%||2.63%||-0.07|
|10-year fixed refinance rate||2.46%||2.52%||-0.06|
Rates as of April 8, 2021.
Factors Behind Today’s Refinance Rates
While there’s no single entity that determines refinance rates, the Federal Reserve has an outsized influence on them. When it decides to increase its purchase of mortgage-backed securities, you’ll normally see mortgage rates drop. The Federal Reserve’s policies also impact inflation, which can influence where rates are headed.
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 the best refinance rates are usually available to those with better credit scores and less debt.
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?
Since the beginning of 2021, refinance rates have been making a steady march upward.
This increase in rates has been driven by several factors, including inflation, and the economy. As the economy begins to show signs of life and spending increases thanks to a new round of economic stimulus, investors are expecting inflation to increase. And when inflation goes up, rates follow suit.
With more and more people getting vaccinated everyday, there is hope that the worst is behind us. So the days of all-time low rates look to be over. However, even with refinance rates making strong gains, they still remain low. So for many homeowners, now is still a good time to refinance, even if rates aren’t as low as they were just a few months ago.
How to Qualify for the Best Refinance Rate
Your personal situation has a big effect on the refinance rate you get. Having less debt and a better credit score usually will get you a better mortgage refinance rate.
Your situation isn’t the only factor that impacts the mortgage refinance rate you qualify for. The amount of equity you have in the home 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 will impact your mortgage refinance rate. A loan with a shorter repayment term typically has lower refinance rates than refinance loans with longer repayment terms, all else equal. Your interest rate is also affected by the type of refinance you plan on taking out. Cash-out refinance loans have larger refinance interest 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