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The average 30-year fixed refinance rate stayed at 4.08% as Russia’s invasion of Ukraine adds more volatility to financial markets.
Experts say the current drop in rates, coming during a general increase since the start of the year, could be short-lived as other economic trends point to increases. Those include high inflation and expectations that the Federal Reserve will take action this month to address it.
The average mortgage refinance rates are as follows:
You can discover the right refinance rate for you here.
2022 Refinance Rate Trends
For 2022, many experts believe we will see refinance and mortgage rates increase by the end of the year. The Fed has started winding down its purchases of mortgage-backed securities and is poised to raise short-term interest rates, possibly as early as March 2022. These factors only add to the forecast increase in rates. According to the U.S. Bureau of Labor Statistics, inflation came in at 7% last year, a number we haven’t seen since 1982. While the Omicron variant – as well as other COVID-19 variants – may hinder mortgage rate increases. The threat of new Coronavirus strains, however, isn’t expected to result in a drop in rates in the long run.
What the Refinance Rate Trends Mean for You
There has been a significant increase in refinance rates, but overall borrowers can still access rates near historic lows. Now is a good time to refinance if you haven’t done so in the past couple of years. Generally speaking, homeowners could save thousands with a rate and term refinance if their new rate is 0.75% to 1% below their current rate.
In this hot housing market, the ability to turn the equity in your home into cash with a home equity line of credit (HELOC) has become increasingly popular. In some situations, a HELOC can make sense, especially when consolidating debt or remodeling your home.
When considering refinancing, homeowners may want to think about whether it makes sense for their particular situation. Refinance rates are likely to continue an upward trajectory in the long term, so it may be worth crunching the numbers with a few lenders to see if you can benefit.
Refinance Closing Costs
For a new mortgage, you will have to …….