Current Refinance Rates, August 4, 2020 | Rates drop off

Daily Refinance blog

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Multiple benchmark mortgage refinance rates trended down today.

The average rates for 30-year fixed and 15-year fixed refinances both dropped. The average rate on 10-year fixed refis, meanwhile, also fell.

Refinancing rates change daily, but they have remained in a historically low range for quite some time. If you’re in the market to refinance, it could make sense to lock if you see a rate you like.

Find the right refinance rate for you now .

30-year fixed refinance

The average 30-year fixed-refinance rate is 3.09 percent, down 12 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was higher, at 3.33 percent.

At the current average rate, you’ll pay $426.47 per month in principal and interest for every $100,000 you borrow. That’s lower by $6.54 than it would have been last week.

You can use Bankrate’s mortgage calculator to figure out 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 15-year fixed refi average rate is now 2.68 percent, down 10 basis points over the last week.

Monthly payments on a 15-year fixed refinance at that rate will cost around $675 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 2.75 percent, down 3 basis points over the last week.

Monthly payments on a 10-year fixed-rate refi at 2.75 percent would cost $955.49 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 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 3.09% 3.21% -0.12
15-year fixed refi 2.68% 2.78% -0.10
10-year fixed refi 2.75% 2.78% -0.03

Rates as of August 3, 2020.

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

How to decide whether to lock in your 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.

Why do refinance rates rise and fall?

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.

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.

What are current mortgage refinance rates?

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.”

Explore other loan types
Loan Type Purchase Rates Refinance Rates
The index above links out to loan-specific pagesto help you learn more about rates by product type.
30-Year Loan 30-Year Interest Rates 30-Year Refinance Interest Rates
20-Year Loan 20-Year Fixed Mortgage Rates 20-Year Refinance Interest Rates
15-Year Loan Today’s 15-Year Mortgage Rates 15-Year Refinance Rates
10-Year Loan 10-Year Fixed Mortgage Rates Current 10-Year Refinance Rates
FHA Loan Current FHA Mortgage Rates FHA Refinance Interest Rates
VA Loan VA Loan Interest Rates VA Refi Interest Rates
ARM Loan Adjustable Rate Mortgage Rates ARM Refinance Interest Rates
Jumbo Loan Jumbo Mortgage Rates Current Jumbo Refinance Rates