Mortgage refinance rates have been moderating in response to rising layoffs and worries about a potential economic downturn. Despite the recent dip in rates, experts don’t expect another refinancing boom like in 2020 and 2021, when mortgage rates dropped to historic lows.
Until mortgage rates move below 6%, which isn’t guaranteed this year, refinancing activity is likely to remain limited. Most homeowners refinance to save money on their monthly payment with a lower interest rate. However, you might be considering refinancing for other reasons, such as modifying your loan term or type.
Mortgage refinance rates change daily depending on multiple economic and political factors. Check out our weekly mortgage rate forecast for expert predictions on where rates are headed.
Today's average refinance rates
| 30-year fixed-rate | 6.97% | (+0.31) |
| 15-year fixed-rate | 6.20% | (+0.26) |
| 30-year fixed-rate jumbo | 6.96% | (+0.18) |
| 5/1 ARM | 6.18% | (+0.24) |
| 10-year fixed-rate | 6.16% | (+0.37) |
| 30-year fixed-rate refinance | 6.94% | (+0.20) |
| 15-year fixed-rate refinance | 6.30% | (+0.17) |
| 10-year fixed refinance | 6.17% | (+0.07) |
When mortgage rates start to fall, be ready to take advantage. Experts recommend shopping around and comparing multiple offers to get the lowest rate. Enter your information here to get a custom quote from one of CNET's partner lenders.
About these rates: Bankrate's tool features rates from partner lenders that you can use when comparing multiple mortgage rates.
Today's refinance rate trends
Late last year, mortgage rates climbed back into the 7% range after the Federal Reserve said it would adopt a slower pace of interest rate cuts in 2025 due to limited progress on inflation.
Since then, markets have grown increasingly concerned that the Trump administration's policies, particularly on trade, funding cuts and immigration, will lead to higher unemployment and reduced economic growth. A weakening economy would likely prompt the Fed to resume cutting interest rates in May or June, putting downward pressure on mortgage rates and increasing refinance activity.
What to know about 2025 refinance rate expectations
Experts say the Fed's rate cuts could help mortgage interest rates drop further by the end of 2025. However, homeowners shouldn’t expect mortgage refinance rates to suddenly plunge from just one policy move. Though the Fed's benchmark interest rate influences the cost of consumer borrowing, the central bank doesn’t directly control the mortgage market.
Overall, refinance rates will not become significantly more affordable in the next year without multiple interest rate cuts and weaker economic data. It usually takes several months for interest rate adjustments to be reflected in the rates lenders advertise to consumers.
What to know about refinancing
When you refinance your mortgage, you take out another home loan that pays off your initial mortgage. With a traditional refinance, your new home loan will have a different term and/or interest rate. With a cash-out refinance, you’ll tap into your equity with a new loan that’s bigger than your existing mortgage balance, allowing you to pocket the difference in cash.
Refinancing can be a great financial move if you score a low rate or can pay off your home loan in less time, but consider whether it’s the right choice for you. Reducing your interest rate by 1% or more is an incentive to refinance, allowing you to cut your monthly payment significantly.
But refinancing your mortgage isn’t free. Since you’re taking out a whole new home loan, you’ll need to pay another set of closing costs. If you fall into that pool of homeowners who purchased property when rates were high, consider reaching out to your lender and running the numbers to see whether a mortgage refinance makes sense for your budget, said Logan Mohtashami, lead analyst at HousingWire.
Choosing the right refinance type and term
The rates advertised online often require specific conditions for eligibility. Your personal interest rate will be influenced by market conditions as well as your specific credit history, financial profile and application. Having 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 rates.
30-year fixed-rate refinance
The average rate for a 30-year fixed refinance loan is currently 6.75%, a decrease of 10 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) A 30-year fixed refinance will typically have lower monthly payments than a 15-year or 10-year refinance, but it will take you longer to pay off and typically cost you more in interest over the long term.
15-year fixed-rate refinance
The average 15-year fixed refinance rate right now is 6.13%, a decrease of 6 basis points from what we saw the previous week. Though a 15-year fixed refinance will most likely raise your monthly payment compared to a 30-year loan, you’ll save more money over time because you’re paying off your loan quicker. Also, 15-year refinance rates are typically lower than 30-year refinance rates, which will help you save more in the long run.
10-year fixed-rate refinance
The average rate for a 10-year fixed refinance loan is currently 6.11%, a decrease of 5 basis points from what we saw the previous week. A 10-year refinance typically has the lowest interest rate but the highest monthly payment of all refinance terms. A 10-year refinance can help you pay off your house much quicker and save on interest, but make sure you can afford the steeper monthly payment.
To get the best refinance rates, make your application as strong as possible by getting your finances in order, using credit responsibly and monitoring your credit regularly. And don’t forget to speak with multiple lenders and shop around.
Reasons to refinance
Homeowners usually refinance to save money, but there are other reasons to do so. Here are the most common reasons homeowners refinance:
- To get a lower interest rate: If you can secure a rate that’s at least 1% lower than the one on your current mortgage, it could make sense to refinance.
- To switch the type of mortgage: If you have an adjustable-rate mortgage and want greater security, you could refinance to a fixed-rate mortgage.
- To eliminate mortgage insurance: If you have an FHA loan that requires mortgage insurance, you can refinance to a conventional loan once you have 20% equity.
- To change the length of a loan term: Refinancing to a longer loan term could lower your monthly payment. Refinancing to a shorter term will save you interest in the long run.
- To tap into your equity through a cash-out refinance: If you replace your mortgage with a larger loan, you can receive the difference in cash to cover a large expense.
- To take someone off the mortgage: In case of divorce, you can apply for a new home loan in just your name and use the funds to pay off your existing mortgage.
