Several closely watched mortgage refinance rates climbed today.
The average rate nationwide for a 30-year fixed-rate refinance climbed, but the average rate on a 15-year fixed was flat. The average rate on 10-year fixed refis, meanwhile, inched up.
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 may be a great time to lock in a rate.
Compare refinance rates for a variety of loan types here.
30-year fixed refinance
The average 30-year fixed-refinance rate is 3.19 percent, up 6 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was lower, at 3.07 percent.
At the current average rate, you’ll pay $431.92 per month in principal and interest for every $100,000 you borrow. That’s an increase of $3.27 over what you would have paid last week.
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 average for a 15-year refi is currently running at 2.62 percent, unchanged from a week ago.
Monthly payments on a 15-year fixed refinance at that rate will cost around $670 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 faster.
10-year fixed refinance
The average rate for a 10-year fixed-refinance loan is 2.67 percent, up 4 basis points over the last week.
Monthly payments on a 10-year fixed-rate refi at 2.67 percent would cost $948.62 per month for every $100,000 you borrow. That hefty monthly payment comes with the benefit of paying even less interest over the life of the loan 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€TMs 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 3.19% 3.13% +0.06
15-year fixed refi 2.62% 2.62% N/C
10-year fixed refi 2.67% 2.63% +0.04
Rates as of October 12, 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.”
News articles about other loan terms:
Mortgage interest rates today
Current 30-year mortgage rates
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