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Today, a few closely followed mortgage refinance rates climbed.

Both the 15-year fixed and 30-year fixed saw their average rates increase. And average rates for 10-year fixed refinances also increased.

Refinance rates have spiked in the early part of this year and seem poised to continue their upward march. Short-term interest rates have already been raised twice by the Federal Reserve this year, and more are to come.

A borrower should carefully review the numbers before taking out a new mortgage in the current interest rate environment. Simply put, the cost of refinancing is increasing because rates are higher. With that in mind, your refinance rate isn’t the only thing that matters. The fees you pay to close a home loan matter, and can add up to thousands of dollars.

Let’s take a look at the current refi rate trends.

The average mortgage refinance rates are as follows:

• 30-year mortgage refinance rate: 5.53%
• The average 15-year fixed refinance rates is 4.82%
• 10-year mortgage refinance rate: 4.90%

You can discover the right refinance rate for you here.

Refinance Rate Forecast: What Is Driving Mortgage Rate Change?

June’s Consumer Price Index (CPI) reported annual inflation increased again in July to 9.1%. . It still puts it at the level of the 40-year highs we’ve experienced the past few months. And that’s bad news for refinance rates.

To fight high inflation the Federal Reserve has been raising short-term interest rates. Adding to the issue is Russia’s invasion of Ukraine and China’s COVID-19 lockdowns. Both of these geopolitical events threaten to compound existing supply chain issues and add to inflation. And we haven’t even started to feel these supply shocks, “it’s going to take months for those disruptions to seep fully into the supply chain,” Lindsey Piegza, chief economist at Stifel Financial told NextAdvisor.

All of this means that we could be stuck with high inflation for longer than we’d like, which increases the likelihood that the Fed will need to be aggressive in raising rates.

Is Refinancing Now a Good Idea?

A rate and term refinance can save you money in the long run, but typically you’ll want the new rate to be at least 0.75% to 1% below your current rate. That said, the recent spike in refinance rates has drastically reduced the number of homeowners with interest rates that are well above today’s average rates.

In this hot housing market, the ability to turn the equity in your home into cash with a home equity line of credit (HELOC) has become increasingly popular. A HELOC can be a reasonable option for financing home repairs or improvements, just be sure to understand all of the fine print regardless fees, the interest rate and the repayment schedule..

30-Year Refinance Rates

Right now, the average 30-year fixed refinance has an interest rate of 5.53%, an increase of 8 basis points from what we saw last week.

You can use our mortgage calculator to get an idea of what your monthly payments will be and to understand how paying more each month will impact your mortgage. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.

15-Year Refi Rates

Currently, the average rate for a 15-year fixed refinance loan is 4.82%, an increase of 12 basis points over the previous week.

Monthly payments on a 15-year refinance loan can be a considerable amount more than what you’d get with a 30-year mortgage. However, a shorter loan term can help you build up equity in your home much more quickly.

10-Year Refinance Rates

The average 10-year, fixed refinance rate is 4.90%, an increase of 23 basis points from what we saw last week.

Monthly payments with a 10-year refinance term would cost even more than what you’d pay on a 15-year loan. The upside is you’d end up paying even less interest over the life of the loan.

Rates as of August 10, 2022.

Take a look at mortgage refinance rates for a number of different loans.

Refinance Rate Frequently Asked Questions (FAQ):

Current Mortgage Rates by Loan Type

Mortgage Refinance Rates

• 30 Year Fixed Refinance Rates
• 15 Year Fixed Refinance Rates
• VA Refinance Rates
• Jumbo Refinance Rates

Home Loan Purchase Rates

• 30 Year Fixed Mortgage Rates
• 20 Year Fixed Mortgage Rates
• 15 Year Fixed Mortgage Rates
• 10 Year Fixed Mortgage Rates

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Today, several benchmark refinance rates went down.

Both the 15-year fixed and 30-year fixed saw their mean rates drop. The average rate on 10-year fixed refinance mortgages also trailed off.

Refinance rates have spiked in the early part of this year and seem poised to continue their upward march. We’ve already seen multiple increases in short-term interest rates and the Fed has plans for more to come.

Given the current rate environment, it is prudent for borrowers to look hard at the numbers before taking out a new home loan. Simply put, the cost of refinancing is increasing because rates are higher. That said, interest rates aren’t the only thing to concentrate on. The interest you’re paying over time is one thing, but the upfront closing costs can be 3% to 6% of the loan amount. That’s potentially thousands of dollars in fees.

Here’s where refinance rates are today .

The average mortgage refinance rates are as follows:

• 30-year mortgage refinance rate: 5.59%
• Today, the average 15-year fixed refinance rate is 4.85%
• 10-year mortgage refinance rate: 4.74%

Take a look at local refinance rates.

Where Are Refinance Trending?

The annual inflation rate came in it at 8.3% in April, according to the data from the Bureau of Labor Statistics. It still puts it at the level of the 40-year highs we’ve experienced the past few months. And that’s not good for refinance rates.

In response to high inflation that has lasted longer than initially anticipated, the Federal Reserve has begun increasing interest rates. There are also geopolitical events that are poised to add to our inflation woes. China’s COVID lockdowns and the war in Ukraine could both exacerbate existing supply shortages. These issues haven’t even hit the U.S. yet, “it’s going to take months for those disruptions to seep fully into the supply chain,” Lindsey Piegza, chief economist at Stifel Financial told NextAdvisor.

Because of all of this, we could be stuck with high inflation for much longer than we want, which makes it more likely that the Fed will have to raise interest rates aggressively.

Does Refinancing Still Make Sense?

Generally speaking, homeowners could save thousands with a rate and term refinance if their new rate is 0.75% to 1% below their current rate. That said, the recent spike in refinance rates has drastically reduced the number of homeowners with interest rates that are well above today’s average rates.

In this hot housing market, the ability to turn the equity in your home into cash with a home equity line of credit (HELOC) has become increasingly popular. In some situations, a HELOC can make sense, especially when consolidating debt or remodeling your home.

History of the 30-Year Fixed Mortgage Rate

Current mortgage interest rates are still within a normal historical range, even if they’re breaking through the psychological barrier of 5%. If your current rate is higher than today’s rates, then a refinance could be a good option.

The historical rate trends shown in this chart reference data complied by Freddie Mac. NextAdvisor typically uses rate information collected by Bankrate. Although these mortgage rate surveys differ, they tend to show the same trends.

30-Year Refinance Rates

Right now, the average 30-year fixed refinance has an interest rate of 5.59%, a decrease of 10 basis points over the previous week.

You can use our mortgage calculator to price out your monthly mortgage payments and to understand what the effects of making extra payments would be. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.

15-Year Refinance Rates

Right now, average 15-year fixed refinance rates are 4.85%, a decrease of 8 basis points from what we saw last week.

Monthly payments on a 15-year refinance loan are tougher to fit into a monthly budget than a 30-year mortgage payment would be. However, a shorter loan term can save you thousands of dollars interest over the life of the loan.

10-Year Fixed Refinance Rates

The average 10-year, fixed refinance rate is 4.74%, a decrease of 7 basis points from a week ago.

Monthly payments with a 10-year refinance term would cost a significant amount more per month than you would with a 15-year term, but you’ll pay less interest in the long term.

Rates as of July 25, 2022.

Take a look at mortgage refinance rates for a number of different loans.

Refinance Rate Frequently Asked Questions (FAQ):

Mortgage Interest Rates by Loan Type

Mortgage Refi Rates

• 30 Year Fixed Refinance Rates
• 15 Year Fixed Refinance Rates
• VA Refinance Rates
• Jumbo Refinance Rates

Home Loan Rates

• 30 Year Fixed Mortgage Rates
• 20 Year Fixed Mortgage Rates
• 15 Year Fixed Mortgage Rates
• 10 Year Fixed Mortgage Rates

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In 2022, mortgage rates rose nearly to levels not seen since before the pandemic, after nearly two years of record-low rates.
The refinance or purchase of your home doesn’t have to be put on hold. Although rates are higher than they were in 2021, 30-year fixed rates are still close to rates from a few years ago.

The fact is, a homebuyer’s decision involves a lot more than just an interest rate. It’s a lifestyle decision. In spite of the impact of the interest rate market on mortgages, it is not wise to base your decision solely on a few basis points. What’s most important to consider is to set a realistic homebuying budget and stick to it.

Let’s look at current mortgage rates, previous rates, and what all this means for borrowers.

Looking at today’s mortgage rates a number of preeminent rates boasted increases. The averages for both 30-year fixed and 15-year fixed mortgages both crept higher. The most common type of variable-rate mortgage is the 5/1 adjustable-rate mortgage (ARM) remained steady.

Mortgage rates currently are:

• 30-year fixed mortgage rates are averaging 5.80%
• 20-year mortgage rate: 5.74%
• 15-year mortgage rate: 4.98%
• Today’s 10-year fixed mortgage rate is 4.92%
• 5/1 ARM rate: 4.21%

Mortgage Rate Trends: Why Are Mortgage Rates Changing So Fast?

Mortgage rates have increased because of a variety of economic factors so far this year. Persistently high inflation is a big one, Jacob Channel, senior economic analyst at LendingTree told us. May’s inflation report shows 8.6% inflation, the highest level in 40 years. To combat this inflation, the Federal Reserve increased its benchmark short-term interest rate. Since inflation remained higher than expected, the Fed raised rates by 50 basis points in May and by 75 basis points in June.

Following the inflation report, mortgage rates spiked ahead of the Fed’s announcement. “I think what we’re seeing is that lenders had already anticipated that the Fed was going to raise the Fed funds rate by 75 basis points and they began to preemptively push mortgage rates up,” Jacob Channel, senior economist at LendingTree, told us.

In addition to the COVID lockdown in China and Russia’s invasion of Ukrainian territory, financial markets are still reacting to other global factors. “​​We have a lot of factors like that that are putting upward pressure on mortgage rates,” Channel says. “The volatility has been through the roof,” Shashank Shekhar, founder and CEO of InstaMortgage, told us. “The market has been adjusting to a new news cycle practically every single day.”

Current Mortgage Rates: Are They Good For Buying a Home Right Now?

Despite the dramatic increases, mortgage rates remain at relatively normal levels and are still considered historically favorable mortgage rates.

Home prices are also on the rise, and as rates increase, that will also contribute to the rising cost of home ownership. Prices are up significantly from before the pandemic, with a combination of limited supply of homes, higher costs to build homes and massive demand from buyers leading to the surge.

It’s also important to remember that while mortgage rates are important, and the difference of a point or so can mean a lot of money over a 30-year mortgage, experts advise against trying to time the market to get the best mortgage rate. Focus on finding the right house, and do it when your personal lifestyle and financial situation indicate it’s the right time.

Be sure to get quotes from different lenders to ensure you’re getting the best deal, experts say. “The rate highly impacts your monthly affordability for as long as you will hold this home,” Skylar Olsen, principal economist at Tomo, a digital real estate and mortgage company, told us. “It is actually a critical piece of this decision, and that takes shopping around.”

Looking at Today’s Mortgage Refinance Rates

There’s good news if you’ve been considering a refinance because the mean rates for 15-year fixed and 30-year fixed refinance loans declined. If you’ve been considering a 10-year refinance loan, just know average rates also went down.

The average refinance rates are as follows:

• 30-year fixed refinance rates are averaging: 5.69%
• 20-year fixed refinance rate: 5.69%
• 15-year fixed refinance rates are averaging 4.97%
• 10-year refinance rate: 4.90%

Compare countrywide home loan rates from various lenders .

30-Year Fixed Mortgage Interest Rates

The average 30-year fixed mortgage interest rate is 5.80%, which is a growth of 1 basis point from seven days ago.

15-Year Fixed Mortgage Interest Rates

The median rate for a 15-year fixed mortgage is 4.98%, which is an increase of 1 basis point from seven days ago.

A 15-year, fixed-rate mortgage’s monthly payment will be much bigger. So finding room in your budget for a 30-year loan’s monthly payment would be more simple. However, 15-year loans have some considerable benefits: You’ll pay thousands less in interest and pay off your loan much earlier.

5/1 ARM Mortgage Rates

A 5/1 ARM has an average rate of 4.21%, the same rate from the same time last week.

An ARM is ideal for households who will sell or refinance before the rate changes. If that’s not the case, their interest rates could end up being significantly higher after a rate adjusts.

For the first five years, a 5/1 ARM will typically have a lower interest rate compared to a 30-year fixed mortgage. Keep in mind that your payment could end up being hundreds of dollars higher after a rate adjustment, depending on the terms of your loan.

The table below compares today’s average rates to what they were a week ago, and is based on information provided to Bankrate by lenders nationwide:

Rates as of July 22, 2022.

Mortgage Rate Frequently Asked Questions (FAQ):