Based on data compiled by Credible, two key mortgage refinance rates have fallen, one rose and the fourth remained unchanged since last Friday.
- 30-year fixed-rate refinance: 5.875%, up from 5.625%, +0.250
- 20-year fixed-rate refinance: 4.990%, down from 5.250%, -0.260
- 15-year fixed-rate refinance: 4.875%, unchanged
- 10-year fixed-rate refinance: 4.500%, down from 4.750%, -0.250
Rates last updated on July 18, 2022. These rates are based on the assumptions shown here.
If you’re thinking of doing a cash-out refinance or refinancing your home mortgage to lower your interest rate, consider using Credible. Credible's free online tool will let you compare rates from multiple mortgage lenders. You can see prequalified rates in as little as three minutes.
What this means: Rates for a 20-year mortgage refinance dipped back under the 5% mark today, while rates for 30-year terms edged up. Rates for 10- and 15-year mortgages are a full percentage point or more lower than 30-year rates, meaning homeowners looking to refinance may want to consider a shorter term for greater interest savings. But homeowners looking to stick with a longer term should consider a 20-year refinance while rates are under 5%. Mortgage refinance rates can fluctuate from day to day, so homeowners may want to act today to lock in a lower rate ahead of future increases.
How mortgage rates have changed over time
Today’s mortgage interest rates are well below the highest annual average rate recorded by Freddie Mac — 16.63% in 1981. A year before the COVID-19 pandemic upended economies across the world, the average interest rate for a 30-year fixed-rate mortgage for 2019 was 3.94%. The average rate for 2021 was 2.96%, the lowest annual average in 30 years.
The historic drop in interest rates means homeowners who have mortgages from 2019 and older could potentially realize significant interest savings by refinancing with one of today’s lower interest rates.
If you’re ready to take advantage of current mortgage refinance rates that are below average historical lows, you can use Credible to check rates from multiple lenders.
How to get your lowest mortgage refinance rate
If you’re interested in refinancing your mortgage, improving your credit score and paying down any other debt could secure you a lower rate. It’s also a good idea to compare rates from different lenders if you're hoping to refinance so you can find the best rate for your situation.
Borrowers can save $1,500 on average over the life of their loan by shopping for just one additional rate quote, and an average of $3,000 by comparing five rate quotes, according to research from Freddie Mac.
Be sure to shop around and compare current mortgage rates from multiple mortgage lenders if you decide to refinance your mortgage. You can do this easily with Credible's free online tool and see your prequalified rates in only three minutes.
How does Credible calculate refinance rates?
Changing economic conditions, central bank policy decisions, investor sentiment and other factors influence the movement of mortgage refinance rates. Credible average mortgage refinance rates reported in this article are calculated based on information provided by partner lenders who pay compensation to Credible.
The rates assume a borrower has a 740 credit score and is borrowing a conventional loan for a single-family home that will be their primary residence. The rates also assume no (or very low) discount points and a down payment of 20%.
Credible mortgage refinance rates reported here will only give you an idea of current average rates. The rate you receive can vary based on a number of factors.
Think it might be the right time to refinance? Be sure to shop around and compare rates with multiple mortgage lenders. You can do this easily with Credible and see your prequalified rates in only three minutes.
Is now a good time to refinance?
Everyone’s situation is different, but generally, it may be a good time to refinance if:
- You’ll be able to get a lower interest rate than you currently have.
- Refinancing will save you money over the life of your home loan.
- Your savings from refinancing will ultimately exceed closing costs.
- You know you’ll be staying in your home long enough to recoup the costs of refinancing.
- You have sufficient equity in your home to avoid private mortgage insurance (PMI).
If your home needs significant, costly repairs it might be a good time to refinance in order to withdraw some equity to pay for those repairs. Just be aware that lenders generally limit the amount you can take from your home in a cash-out refinance.
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As a Credible authority on mortgages and personal finance, Chris Jennings has covered topics that include mortgage loans, mortgage refinancing, and more. He’s been an editor and editorial assistant in the online personal finance space for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.