We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.
Today, a few notable refinance rates went down.
Both the 15-year fixed and 30-year fixed saw their mean rates slump. And average rates for 10-year fixed refinances also declined.
Refinance rates have spiked in the early part of this year and seem poised to continue their upward march. The Federal Reserve has already increased short-term rates twice this year, with more raises to come.
A borrower should carefully review the numbers before taking out a new mortgage in the current interest rate environment. With refi rates on the rise, the cost of borrowing is higher than it was a year ago. With that in mind, your refinance rate isn’t the only thing that matters. The fees you pay to close a home loan matter, and can add up to thousands of dollars.
Here’s where refinance rates are today .
Refinance rates currently are:
Take a look at local refinance rates.
Refinance Rate Trends
In April, annual inflation was 8.3% based on the Consumer Price Index (CPI). The price still stands on par with the 40-year inflation highs of recent months. And that’s bad news for refinance rates.
To fight high inflation the Federal Reserve has been raising short-term interest rates. On top of that, there is more trouble brewing for the global supply chain. Russia’s invasion of Ukraine and China’s latest round of COVID lockdowns threaten to add to the rising inflation we are currently experiencing. And the impact these events have on inflation may not be felt right away. “The pain of the April and March lockdown is not yet fully being felt in the manufacturing sector outside of China,” Lindsey Piegza, chief economist at Stifel Financial told NextAdvisor.
A prolonged period of high inflation would make the Federal Reserve more likely to increase rates dramatically.
Is Now a Good Time to Refinance?
A rate and term refinance can save you money in the long run, but typically you’ll want the new rate to be at least 0.75% to 1% below your current rate. However, as rates have risen, the number of homeowners with rates well above current market rates has diminished dramatically.
There are alternatives to refinancing. With values rising in today’s housing market, homeowners may want to turn that value into cash. With rates where they are, a home equity line of …….