Shutterstock.com

Shutterstock.com

Several key mortgage refinance rates dropped today.

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

Refinancing rates are constantly changing, but they continue to represent a bargain compared to rates before the Great Recession. If you’re in the market to refinance, it could be a great time to lock in a rate.

Compare refinancing rates in your area now.

30-year fixed refinance

The average 30-year fixed-refinance rate is 3.36 percent, down 7 basis points since the same time last week. A month ago, the average rate on a 30-year fixed refinance was higher, at 3.59 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 down $3.88 from what it would have been last week.

You can use Bankrate’s mortgage calculator to get a handle on what your monthly payments would be 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 for a 15-year refi is currently running at 2.83 percent, down 10 basis points over the last seven days.

Monthly payments on a 15-year fixed refinance at that rate will cost around $681 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 faster.

10-year fixed refinance

The average rate for a 10-year fixed-refinance loan is 2.90 percent, down 10 basis points over the last seven days.

Monthly payments on a 10-year fixed-rate refi at 2.90 percent would cost $965.61 per month for every $100,000 you borrow. If you can manage that substantial 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 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 3.36% 3.43% -0.07
15-year fixed refi 2.83% 2.93% -0.10
10-year fixed refi 2.90% 3.00% -0.10

Rates as of June 29, 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.

Why mortgage refinance rates 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.

What are current mortgage refinance rates?

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.”

See rates for a variety of loan types
Loan term Purchase Rates Refinance Rates
The table above links out to loan-specific pagesto help you learn more about rates by mortgage type.
30-Year Loan 30-Year Mortgage Rates 30-Year Mortgage Refinance Rates
20-Year Loan 20-Year Mortgage Rates 20-Year Mortgage Refinance Rates
15-Year Loan 15-Year Mortgage Rates Current 15-Year Refinance Rates
10-Year Loan 10-Year Mortgage Rates 10-Year Refinance Rates
FHA Loan FHA Loan Interest Rates FHA Mortgage Refi Rates
VA Loan Current VA Mortgage Rates VA Refinance Loan Rates
ARM Loan Adjustable Rate Mortgage Rates ARM Refi Mortage Rates
Jumbo Loan Jumbo Loan Interest Rates Current Jumbo Refinance Rates