The national average rate for a 15-year fixed rate refinance has fallen, while 30-year fixed rate refinances have increased. The average 10-year fixed refinancing rate has fallen.

Like mortgage rates, refinance rates fluctuate daily. With inflation at its highest level in 40 years, the Federal Reserve raised the federal funds rate six times in 2022 in an attempt to slow the surge in inflation. Although mortgage rates are not set by the central bank, its rate hikes increase the cost of borrowing and ultimately impact mortgage and refinance rates and the housing market in general. Whether refinancing rates continue to rise or fall will largely depend on the evolution of inflation. If inflation slows, rates will likely follow. But if inflation remains high, we could see refinancing rates maintain their upward trajectory.

If a refi’s rates are currently lower than your current mortgage rate, you could save money by fixing a rate now. As always, consider your goals and situation, and compare rates and fees to find a mortgage lender that can meet your needs.

30-year fixed rate refinancing

For 30-year fixed refinances, the average rate is currently 7.32%, up 10 basis points from a week ago. (One basis point equals 0.01%.) Refinancing a 30-year fixed loan from a shorter loan term can lower your monthly payment. For this reason, a 30-year refinance can be a good idea if you’re having trouble making your monthly payments. In exchange for the lower monthly payments, the rates on a 30-year refinance will generally be higher than the rates on a 15- and 10-year refinance. You will also repay your loan more slowly.

15-year fixed-rate refinancing

The average 15-year fixed refinance rate is currently at 6.44%, down 3 basis points from what we saw the previous week. Refinancing a 15-year fixed loan from a 30-year fixed loan will likely increase your monthly payment. On the other hand, you will save money on interest because you will pay off the loan sooner. You’ll also typically get lower interest rates than a 30-year loan. This can help you save even more in the long run.

10-year fixed rate refinancing

The current average interest rate for a 10-year refinance is 6.58%, down 6 basis points from last week. A 10-year refinance will generally have the highest monthly payment of any refinance term, but the lowest interest rate. A 10-year refinance can be a great deal because paying off your home sooner will help you save on long-term interest. But you need to confirm that you can afford a higher monthly payment by evaluating your budget and your overall financial situation.

Where are the rates going

At the start of the pandemic, refinance rates fell to historic lows, but have been rising steadily since the start of 2022. The Fed recently hiked interest rates another 0.75 percentage points and is poised to raise them again to slow the economy. While it’s unclear exactly what will happen next, if inflation continues to rise, rates are likely to rise. If inflation slows, rates could stabilize and start to fall.

We track refinance rate trends using data collected by Bankrate, which is owned by CNET’s parent company. Here is a table with the average refinance rates reported by lenders in the United States:

Average refinancing interest rate

Product Assess A week ago To change
30-year fixed refi 7.32% 7.22% +0.10
15-year fixed refi 6.44% 6.47% -0.03
10-year fixed refi 6.58% 6.64% -0.06

Rates as of November 8, 2022.

How to Shop for Refinance Rates

It is important to understand that prices advertised online may not apply to you. Your interest rate will be influenced by market conditions as well as your credit history and demand.

Having a high credit score, a low rate of credit utilization, and a history of regular, on-time payments will generally help you get the best interest rates. You can get a good idea of ​​average interest rates online, but be sure to speak with a mortgage professional to see the specific rates you qualify for. To get the best refinance rates, you must first make your application as strong as possible. The best way to improve your credit rating is to get your finances in order, use your credit responsibly, and monitor your credit regularly. Remember to speak with several lenders and shop around.

Refinancing can be a good decision if you get a good rate or can pay off your loan sooner, but think carefully if it’s the right choice for you right now.

When to Consider a Mortgage Refinance

Generally, it’s a good idea to refinance if you can get a lower interest rate than your current interest rate or if you need to change the term of your loan. When deciding to refinance, be sure to consider factors other than market interest. rates, including how long you plan to stay in your current home, the term of your loan and your monthly payment amount. And don’t forget fees and closing costs, which can add up.

As interest rates have risen steadily since the beginning of the year, the pool of applicants for refinancing has shrunk considerably. If you bought your home when interest rates were lower than today, you probably won’t see any financial benefit from refinancing your mortgage.