Several closely watched mortgage refinance rates slid lower today.
Average rates nationwide for 30-year fixed and 15-year fixed refinances both receded. Meanwhile, the average rate on 10-year fixed refis also fell.
Rates for refinancing change daily, but they have remained in a historically low range for quite some time. If you’re in the market to refinance, it may make sense to lock if you see a rate you like.
30-year fixed refinance
The average 30-year fixed-refinance rate is 3.19 percent, down 17 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was higher, at 3.44 percent.
At the current average rate, you’ll pay $431.92 per month in principal and interest for every $100,000 you borrow. That’s a decline of $9.35 from last week.
You can use Bankrate’s mortgage calculator to estimate your monthly payments and see what the effects of making extra payments would be. 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 2.79 percent, down 3 basis points from a week ago.
Monthly payments on a 15-year fixed refinance at that rate will cost around $678 per $100,000 borrowed. That’s clearly much higher than the monthly payment would be on a 30-year mortgage at that rate, but it comes with some big advantages: You’ll come out thousands of dollars ahead 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 2.79 percent, down 7 basis points over the last week.
Monthly payments on a 10-year fixed-rate refi at 2.79 percent would cost $959.16 per month for every $100,000 you borrow. If you can manage that hefty monthly payment, you’ll enjoy even more interest cost savings 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 Bankrateâ€™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:
|30-year fixed refi||3.19%||3.36%||-0.17|
|15-year fixed refi||2.79%||2.82%||-0.03|
|10-year fixed refi||2.79%||2.86%||-0.07|
Rates as of July 10, 2020.
Want to see where rates are right now? See refinance rates for a variety of loan options here.
Should you lock a mortgage refinance rate?
When you lock in a refinance rate, you freeze the rate your lender offers you for a specific period of time. A rate lock will secure that rate between the time you apply for the refinance and when you close on it.
What influences mortgage refinance rates
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.
A strong economy usually means more people buying homes, which drives demand for mortgages. This increased demand can push rates higher. The opposite is also true; less demand can trigger a drop in 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.”
|Loan Type||Purchase Rates||Refinance Rates|
|The table above links out to loan-specific content to help you learn more about rates by mortgage type.|
|30-Year Loan||30 Year Fixed Mortgage Rates||30-Year Refinance Rates|
|20-Year Loan||20-Year Fixed Mortgage Rates||20-Year Mortgage Refinance Rates|
|15-Year Loan||15 Year Fixed Mortgage Rates||Current 15-Year Refinance Rates|
|10-Year Loan||10-Year Mortgage Rates||10-Year Refi Interest Rates|
|FHA Loan||FHA Mortgage Rates||Current FHA Loan Refinance Rates|
|VA Loan||VA Loan Interest Rates||VA Mortgage Refinance Rates|
|ARM Loan||Adjustable Rate Mortgage Rates||Current ARM Refinance Rates|
|Jumbo Loan||Jumbo Loan Rates||Jumbo Refinance Rates|