Current Refinance Rates, July 21, 2020 | Rates fall

4 min read
Daily Refinance blog

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Multiple closely watched mortgage refinance rates sunk lower today.

Nationwide averages for 30-year fixed and 15-year fixed refinances both dropped. Meanwhile, the average rate on 10-year fixed refis also tapered off.

Rates for refinancing change daily, but they remain much lower overall than they were before the Great Recession. If you’re in the market to refinance, it could make sense to go ahead and lock if you see a rate you like.

See refinance rates for a variety of loan options here.

30-year fixed refinance

The average 30-year fixed-refinance rate is 3.21 percent, down 1 basis point compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was higher, at 3.43 percent.

At the current average rate, you’ll pay $433.01 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $0.55 lower.

You can use Bankrate’s mortgage calculator to estimate 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 15-year fixed refi average rate is now 2.74 percent, down 6 basis points over the last seven days.

Monthly payments on a 15-year fixed refinance at that rate will cost around $677 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 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 2.78 percent, down 3 basis points over the last seven days.

Monthly payments on a 10-year fixed-rate refi at 2.78 percent would cost $956.86 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 3.21% 3.22% -0.01
15-year fixed refi 2.74% 2.80% -0.06
10-year fixed refi 2.78% 2.81% -0.03

Rates as of July 20, 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

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.

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 term Purchase Rates Refinance Rates
The table above links out to loan-specific pagesto help our readers learn more about rates by mortgage type.
30-Year Loan 30-Year Interest Rates 30-Year Refinance Interest Rates
20-Year Loan Current 20 Year Mortgage Rates Current 20-Year Refinance Rates
15-Year Loan 15-Year Mortgage Interest Rates 15-Year Refinance Rates
10-Year Loan Current 10 Year Mortgage Rates 10-Year Mortgage Refinance Rates
FHA Loan FHA Mortgage Loan Rates FHA Refinance Rates
VA Loan VA Mortgage Rates VA Refinance Loan Rates
ARM Loan ARM Loan Rates Current ARM Refinance Rates
Jumbo Loan Jumbo Loan Interest Rates Jumbo Loan Refinance Rates