The nationwide average rate for 15-year fixed-rate refinances increased over the past seven days, while 30-year fixed-rate refinance rates decreased. Average rates for the 10-year fixed refinance saw an increase.
Like mortgage rates, refinance rates fluctuate on a daily basis. With inflation at a 40-year high, the Federal Reserve raised the federal funds rate seven times in 2022. Although mortgage rates are not set by the central bank, its rate hikes tend to increase the cost of borrowing money and ultimately affect mortgage and refinance rates and the broader housing market. Whether refinancing rates continue to rise or fall in 2023 depends largely on how things play out with inflation: if it cools, rates are likely to follow. But if it persists, refinance rates will continue their upward trajectory.
If rates for a refi are currently lower than your current mortgage rate, you can save money by locking in a rate now. As always, consider your goals and circumstances, and compare rates and fees to find the mortgage lender that best meets your needs.
30 year fixed rate refinance
The current average interest rate for a 30-year refinance is 6.42%, a decrease of 9 basis points from what we saw a week ago. (One basis point is equal to 0.01%.) Refinancing with a shorter loan term to a 30-year fixed loan can lower your monthly payments. If you are currently having difficulty making your monthly payments, a 30-year refinance may be a good fit for you. Keep in mind, however, that interest rates will typically be higher than for a 10- or 15-year refinance, and you’ll pay off your loan at a slower rate.
15 year fixed rate refinance
The average rate for a 15-year fixed refinance loan currently stands at 5.77%, an increase of 1 basis point from a week ago. With a 15-year fixed refinance, you’ll receive higher monthly payments than you would with a 30-year loan. But you’ll save more money over time because you’re paying off your loan quicker. Interest rates for a 15-year refinance are also lower than those for a 30-year refinance, so you’ll save even more in the long run.
10 year fixed rate refinance
The average rate for a 10-year fixed refinance loan currently stands at 5.81%, an increase of 10 basis points from a week ago. Compared to a 15- or 30-year refinance, a 10-year refinance typically has a lower interest rate but higher monthly payments. A 10-year refinance can be a good deal, as paying off your home sooner will help you save on interest in the long run. Just be sure to carefully consider your budget and current financial situation to make sure you can afford a higher monthly payment.
where rates are going
At the start of the pandemic, refinance interest rates fell to historic lows. But they have been climbing steadily since early 2022. The Fed has raised rates dramatically throughout 2022 and is set to continue with more increases in 2023. If inflation eases, however, rates could stabilize and even begin declining this year.
We track refinance rate trends using data collected by Bankrate, which is owned by CNET’s parent company. Here is a table with average refinance rates supplied by lenders nationwide:
Average Refinance Interest Rates
| product | Rate | A week ago | Change |
|---|---|---|---|
| 30 years fixed ref | 6.42% | 6.51% | -0.09 |
| 15 years fixed ref | 5.77% | 5.76% | +0.01 |
| 10 years fixed ref | 5.81% | 5.71% | +0.10 |
Rates as on February 1, 2023.
How to get personalized refinance rates
It’s important to understand that rates advertised online often require specific conditions to qualify. Your interest rate will be affected by market conditions as well as your specific credit history, financial profile and application.
A high credit score, a low credit utilization ratio, and a history of consistent and on-time payments will generally help you get the best interest rate. You can get a good feel for average interest rates online, but speak with a mortgage professional to be sure which specific rates you qualify for. To get the best refinance rate, you’ll first want to make your application as strong as possible. The best way to improve your credit rating is to organize your finances, use credit responsibly, and monitor your credit regularly. Don’t forget to talk to multiple lenders and shop around.
Refinancing can be a good move if you can get a good rate or pay off your loan sooner – but consider carefully whether it’s the right option for you at this time.
When to consider mortgage refinancing
Most people refinance because market interest rates are lower than their current rates or because they want to change their loan term. In your current home, the term of your loan and the amount of your monthly payments. And don’t forget about fees and closing costs, which can add up.
As interest rates rise in 2022, the pool of refinance applicants shrinks. If you bought your home when interest rates were lower than they are today, there may not be a financial advantage to refinancing your mortgage.
