Current refinancing rates as of July 15, 2022: Rate increases

Both 15-year fixed and 30-year fixed refinancing saw their average rates go up. Average rates for 10-year fixed refinancing also grew.

Like mortgage rates, refinancing rates fluctuate daily. But rates have been rising across the board since early 2022, and we expect that trend to continue through the rest of this year. With inflation at a 40-year high, the Federal Reserve has already raised interest rates three times and is poised to raise them further in 2022. Rate hikes increase the cost of borrowing money, and homeowners who considering a refinance may only find higher rates as the year goes on. If you want to reduce your monthly mortgage payment, it can be advantageous to lock in a rate sooner rather than later. Be sure to think about your goals and circumstances and compare rates and fees to find a mortgage lender that can meet your needs.

30-year fixed rate refinancing

For 30-year fixed refinancing, the average rate is currently at 5.75%, up 5 basis points from a week ago. (One basis point is equivalent to 0.01%). Refinancing a 30-year fixed loan from a shorter loan term can reduce your monthly payments. If you’re having trouble making your monthly payments these days, a 30-year refinance might be a good option for you. However, in exchange for lower monthly payments, 30-year refinance rates will typically be higher than 15-year and 10-year refinance rates. You will also pay off your loan more slowly.

15-year fixed rate refinancing

For 15-year fixed refinancing, the average rate is currently at 4.99%, an increase of 11 basis points from a week ago. With a 15-year fixed refinance, you will have a higher monthly payment than a 30-year loan. But you’ll save more money over time because you’re paying off your loan faster. You will typically also get lower interest rates compared to 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 4.94%, an increase of 8 basis points from a week ago. You’ll pay more each month with a ten-year fixed refinance compared to a 30- or 15-year refinance – but you’ll also have a lower interest rate. A 10-year refinance can help you pay off your home much faster and save on interest. Just be sure to carefully consider your budget and current financial situation to ensure you can afford to pay a higher monthly payment.

Where are the fees going?

At the beginning of the pandemic, refinancing rates fell to historic lows, but they have been rising mainly since the beginning of this year. Refinancing rates are rising due to inflation, which is at its highest level in four decades, as well as actions taken by the Federal Reserve. The Fed recently raised interest rates by 0.75 percentage points — the biggest increase in nearly three decades — and plans to raise them several times throughout 2022 to slow the economy. That means it’s a good idea to take advantage of refinancing now and potentially lock in a decent rate before they go up again.

We track trends in rollover rates using data collected by Bankrate, which is owned by CNET’s parent company. Here is a table of average refinancing rates provided by lenders across the country:

Average refinancing interest rates

products To evaluate Last week Change
30 years fixed refill 5.75% 5.70% +0.05
15 years fixed ref 4.99% 4.88% +0.11
10 years fixed ref 4.94% 4.86% +0.08

Rates as of July 15, 2022.

Finding Custom Refinancing Rates

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

Having a high credit score, low credit utilization rate, and a history of consistent, timely payments will often 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 refinancing rates, you must first make your application as strong as possible. The best way to improve your credit ratings is to get your finances in order, use credit responsibly, and monitor your credit regularly. Don’t forget to talk to several lenders and shop around.

Refinancing can be a great move if you can get a good rate or can pay off your loan sooner – but consider carefully whether it’s the right choice for you right now.

When should I refinance?

Most people refinance because market interest rates are lower than current rates or because they want to change the term of the loan. on your current home, the length of your loan term, and the amount of your monthly payment. And don’t forget about closing fees and costs, which can add up.

As interest rates have risen fairly steadily since the beginning of the year, the number of people eligible for refinancing has decreased significantly. If you bought your home when interest rates were lower than today’s rates, you likely won’t get any financial benefit from refinancing your mortgage.

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