Mortgage refinance rates were mixed, but one key rate notched higher.
The average for a 30-year fixed-rate refinance climbed higher, but the average rate on a 15-year fixed remained steady. Meanwhile, the average rate on 10-year fixed refis were unchanged.
Refinancing rates are in a constant state of flux, but they remain low by historical standards. If you’re in the market to refinance, it could make sense to lock if you see a rate you like.
30-year fixed refinance
The average 30-year fixed-refinance rate is 3.36 percent, up 3 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was higher, at 3.61 percent.
At the current average rate, you’ll pay $441.27 per month in principal and interest for every $100,000 you borrow. That’s up $1.66 from what it would have been last week.
You can use Bankrate’s mortgage calculator to figure out your monthly payments and see the effect of 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 2.82 percent, unchanged since the same time last week.
Monthly payments on a 15-year fixed refinance at that rate will cost around $679 per $100,000 borrowed. That’s obviously 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 2.86 percent, unchanged over the last seven days.
Monthly payments on a 10-year fixed-rate refi at 2.86 percent would cost $959.16 per month for every $100,000 you borrow. As you can see, the hefty savings in interest costs you’ll reap with that short 10-year term comes with the downside of a much larger monthly payment.
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||3.36%||3.33%||+0.03|
|15-year fixed refi||2.82%||2.82%||N/C|
|10-year fixed refi||2.86%||2.86%||N/C|
Rates as of July 3, 2020.
Want to see where rates are right now? See refinance rates for a variety of loan options here.
When to 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 causes mortgage rates to change
Mortgage rates are influenced by a range of economic factors, from inflation to unemployment numbers. Typically, higher inflation means higher interest rates and vice versa. As inflation rises, the dollar loses value, which in turn drives off investors for mortgage-backed securities, causing the prices to fall and yields to climb. When yields climb, rates get more expensive for borrowers.
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 environment
Refinance rates have been volatile since the COVID-19 pandemic upended the U.S. economy, but overall they have been very low. Mortgage rates can rise and fall from week to week, but 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 term||Purchase Rates||Refinance Rates|
|The index above links out to loan-specific pagesto help our readers learn more about rates by product type.|
|30-Year Loan||30-Year Interest Rates||Current 30 Year Refinance Rates|
|20-Year Loan||Current 20 Year Mortgage Rates||20-Year Refi Rates|
|15-Year Loan||15-Year Mortgage Rates||Current 15-Year Refinance Rates|
|10-Year Loan||Current 10 Year Mortgage Rates||Current 10-Year Refinance Rates|
|FHA Loan||FHA Mortgage Loan Rates||FHA Refinance Interest Rates|
|VA Loan||VA Mortgage Interest Rates||VA Refi Interest Rates|
|ARM Loan||ARM Interest Rates||ARM Refinance Interest Rates|
|Jumbo Loan||Jumbo Mortgage Rates||Jumbo Mortgage Refinance Rates|