Refinance Interest Rates Today, July 3, 2020 | Rates fall

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Multiple benchmark mortgage refinance rates sunk lower today.

The average rates for 30-year fixed and 15-year fixed refinances both decreased. Meanwhile, the average rate on 10-year fixed refis also ticked downward.

Rates for refinancing are in a constant state of flux, but they remain much lower overall than they were before the Great Recession. If you’re in the market to refinance, it may be a great time to lock in a rate.

See refinance rates for a variety of loan options here.

30-year fixed refinance

The average 30-year fixed-refinance rate is 3.34 percent, down 2 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was higher, at 3.58 percent.

At the current average rate, you’ll pay $440.16 per month in principal and interest for every $100,000 you borrow. That’s $1.11 lower, compared with last week.

You can use Bankrate’s mortgage calculator to figure out your monthly payments and find out how much you’ll save by adding extra payments. It will also help you calculate how much interest you’ll pay over the life of the loan.

15-year fixed refinance

The average rate for a 15-year fixed refi is 2.80 percent, down 7 basis points from a week ago.

Monthly payments on a 15-year fixed refinance at that rate will cost around $679 per $100,000 borrowed. The bigger payment may be a little harder to find room for in your monthly budget than a 30-year mortgage payment would, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more quickly.

10-year fixed refinance

The average rate for a 10-year fixed-refinance loan is 2.86 percent, down 6 basis points from a week ago.

Monthly payments on a 10-year fixed-rate refi at 2.86 percent would cost $961.92 per month for every $100,000 you borrow. That’s a lot more than the monthly payment on even a 15-year refinance, but in return you’ll pay even less in interest than you would with a 15-year term.

Where rates are headed

To see where Bankrate’s panel of experts expect rates to go from here, check out our Rate Trend Index.

Want to see where rates are right now? Lenders nationwide respond to Bankrate’s weekday mortgage rates survey to bring you the most current rates available. Here you can see the latest marketplace average rates for a wide variety of purchase loans:

Average refinance interest rates
Product Rate Last week Change
30-year fixed refi 3.34% 3.36% -0.02
15-year fixed refi 2.80% 2.87% -0.07
10-year fixed refi 2.86% 2.92% -0.06

Rates as of July 2, 2020.

Want to see where rates are right now? See refinance rates for a variety of loan options here.

Lock your refi rate? How to decide

A rate lock allows you to freeze the interest rate your lender extends to you for a specified period of time. Between the time you apply for a mortgage refinance and close on it, the rate lock will protect you from rising rates.

What causes mortgage rates to change

Economic factors such as inflation and unemployment can impact refinance rates. Generally, higher inflation leads to higher interest rates. The opposite is true; lower inflation typically leads to lower refinance rates. The dollar loses value when inflation rises. That, in turn, drives investors away from mortgage-backed securities (MBS), causing the prices to decrease and yields to increase. When yields move higher, refinance rates get more expensive.

People typically buy more homes when the economy is strong, driving demand for mortgages. Increased demand can cause an increase in rates. Less demand can lead to lower rates.

Current refinance rate landscape

The current mortgage rate environment has been unstable because of the coronavirus pandemic, but generally rates have been low. Mortgage rates are rising and falling from week to week, as lenders are inundated with forbearance and refinance requests. In general, however, rates are consistently below 4 percent and even dipping into the mid to low 3s. This is an especially good time for people with good to excellent credit to lock in a low rate for a purchase loan. However, lenders are also raising credit standards for borrowers and demanding higher down payments as they try to dampen their risks.

Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.

To learn more about the different rate averages Bankrate publishes, see “Understanding Bankrate’s Rate Averages.”

See rates for a variety of loan types
Product Purchase Rates Refinance Rates
The index above links out to loan-specific content to help you learn more about rates by loan type.
30-Year Loan Current 30 Year Mortgage Rates 30-Year Refinance Rates
20-Year Loan 20-Year Fixed Mortgage Rates 20-Year Refi Rates
15-Year Loan 15 Year Fixed Mortgage Rates 15-Year Mortgage Refinance Rates
10-Year Loan 10-Year Mortgage Interest Rates Current 10-Year Refinance Rates
FHA Loan FHA Mortgage Loan Rates FHA Mortgage Refi Rates
VA Loan VA Loan Interest Rates VA Refinance Rates
ARM Loan ARM Mortgage Rates Current ARM Refinance Rates
Jumbo Loan Jumbo Mortgage Rates Jumbo Refinance Rates