Multiple closely watched mortgage refinance rates receded today.
The national averages for 30-year fixed and 15-year fixed refinances both receded. The average rate on 10-year fixed refis, meanwhile, also dropped.
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 may make sense to go ahead and lock if you see a rate you like.
30-year fixed refinance
The average 30-year fixed-refinance rate is 3.34 percent, down 8 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was higher, at 3.54 percent.
At the current average rate, you’ll pay $440.16 per month in principal and interest for every $100,000 you borrow. That’s lower by $4.43 than 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 find out how much you’ll save by 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 for a 15-year refi is currently running at 2.83 percent, down 9 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. Yes, that payment is much bigger than it would be on a 30-year mortgage, 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 more rapidly.
10-year fixed refinance
The average rate for a 10-year fixed-refinance loan is 2.90 percent, down 8 basis points over the last week.
Monthly payments on a 10-year fixed-rate refi at 2.90 percent would cost $964.68 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||3.34%||3.42%||-0.08|
|15-year fixed refi||2.83%||2.92%||-0.09|
|10-year fixed refi||2.90%||2.98%||-0.08|
Rates as of June 30, 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 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.
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.
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 Type||Purchase Rates||Refinance Rates|
|The index above links out to loan-specific content to help you learn more about rates by mortgage type.|
|30-Year Loan||30-Year Interest Rates||30-Year Refinance Rates|
|20-Year Loan||20-Year Mortgage Rates||20-Year Refinance Interest Rates|
|15-Year Loan||Current 15 Year Mortgage Rates||Current 15-Year Refinance Rates|
|10-Year Loan||10-Year Fixed Mortgage Rates||10-Year Refi Interest Rates|
|FHA Loan||FHA Mortgage Rates||FHA Refinance Rates|
|VA Loan||VA Mortgage Rates||VA Refi Interest Rates|
|ARM Loan||ARM Loan Rates||ARM Refi Mortage Rates|
|Jumbo Loan||Jumbo Mortgage Rates||Current Jumbo Refinance Rates|