Average rates for both 15-year fixed and 30-year fixed refinances climbed Tuesday. The average rate for 10-year fixed refinancing also rose.
Like mortgage rates, refinancing rates fluctuate daily. With inflation at a 40-year high , the Fed has raised the federal funds rate four times this year and is poised to raise it again in 2022 in an attempt to slow rampant inflation . Although mortgage rates are not set by the central bank, these federal rate hikes increase borrowing costs. Whether refinancing rates continue to rise or fall will depend on what happens next to inflation. If inflation starts to cool, interest rates may cool with it. But if inflation remains high, we could see refinancing rates keep on an upward trajectory. If your current refi rate is lower than your existing mortgage rate, you can save money by locking in your rate now. As always, consider your goals and circumstances, and compare rates and fees to find a mortgage lender that will meet your needs.
30 Year Fixed Rate Refinance
||30 years fixed refi
|10 years fixed refi||5.46%||5.29%|
Rates as of September 13, 2022.
How to Buy Refinance Rates
Be sure to understand that the rates advertised online May not apply to you. Your interest rate will be affected by market conditions as well as your credit history and application.
Having a high credit score, low credit utilization, and a history of consistent on-time payments will often help you get the best rates. You can find average interest rates online, but be sure to speak with a mortgage professional to find out what specific rates you qualify for. To get the best refinance rate, you first want to make your application as robust as possible. The best way to improve your credit rating is to keep your finances in order, use your credit responsibly and monitor your credit regularly. Don’t forget to talk to multiple lenders and shop around.
If you’re getting good interest rates or can pay off your loan faster, refinancing may be a good option – but think carefully about whether it’s the right option for you right now.
When should I refinance?
For refinancing to make sense, you generally want to get a lower rate than your current rate. Besides interest rates, changing loan terms is another reason to refinance. When deciding whether to refinance, be sure to consider factors other than market interest rates, including how long you plan to stay in your current home, the length of the loan, and the monthly payment amount. And don’t forget fees and transaction fees, which can add up.
As interest rates have risen steadily since the beginning of the year, the number of people eligible for refinancing has dropped significantly. If you bought a house when interest rates were lower than current rates, you probably won’t get any financial benefit from refinancing your mortgage.