Mortgage Refinance Rates for July 8, 2022: Rates Advance

There was an increase in interest rates for 30-year fixed-rate refinances and 15-year fixed refinances today. The average rates for 10-year fixed refinances also saw an increase.

Like mortgage rates, refinance rates fluctuate on a daily basis. But rates have been generally increasing since the beginning of 2022, and we expect that trend could continue through the remainder of this year. With inflation at a 40-year high, the Federal Reserve has already hiked interest rates three times and is poised to raise them further in 2022. Rate hikes increase the cost of borrowing money, and homeowners considering a refinance may only find higher rates as the year goes on. If you’re looking to lower your monthly mortgage payment, it could be advantageous to lock in a rate sooner than later. Make sure to think about your goals and circumstances, and compare rates and fees to find a mortgage lender who can meet your needs.

30-year fixed-rate refinance

The current average interest rate for a 30-year refinance is 5.70%.

Refinancing to a 30-year fixed loan from a shorter loan term can lower your monthly payments. This makes 30-year refinances good for people who are having difficulties making their monthly payments or simply want a bit more breathing room. However, interest rates for a 30-year refinance will typically be higher than rates for a 15-year or 10-year refinance. It’ll also take you longer to pay off your loan.

15-year fixed-rate refinance

The current average interest rate for 15-year refinances is 4.88%. 

Refinancing to a 15-year fixed loan from a 30-year fixed loan will likely raise your monthly payment. But you’ll save more money over time, because you’re paying off your loan quicker. Interest rates for a 15-year refinance also tend to be lower than that of a 30-year refinance, so you’ll save even more in the long run.

10-year fixed-rate refinance

The average rate for a 10-year fixed refinance loan is currently 4.86%. 

A 10-year refinance will typically feature the highest monthly payment of all refinance terms, but the lowest interest rate. A 10-year refinance can be a good deal, since paying off your house sooner will help you save on interest in the long run. However, you should analyze your budget and current financial situation to make sure you’ll be able to afford the higher monthly payment.

Where rates are headed

At the start of the pandemic, refinance rates dropped to historic lows, but they have been mostly climbing since the beginning of this year. Refinance 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 highest increase in almost three decades — and plans to raise them several more 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 refinance rate trends using data collected by Bankrate, which is owned by CNET’s parent company. Here’s a table with the average refinance rates reported by lenders across the country:

Current refinance rates

Today’s refinance rates

Product Interest rate APR
30-year fixed-rate refinance 5.70% 5.71%
30-year fixed-rate FHA refinance 4.84% 5.68%
30-year fixed-rate VA refinance 5.00% 5.19%
30-year fixed-rate jumbo refinance 5.68% 5.69%
20-year fixed-rate refinance 5.69% 5.70%
15-year fixed-rate refinance 4.88% 4.91%
15-year fixed-rate jumbo refinance 4.88% 4.90%
5/1 ARM refinance 4.16% 5.53%
5/1 ARM jumbo refinance 4.42% 5.27%
7/1 ARM refinance 4.90% 4.97%
7/1 ARM jumbo refinance 4.94% 4.90%
10/1 ARM refinance 5.01% 5.02%

How to find personalized refinance rates

It’s important to understand that the 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 ratio and a history of consistent and on-time payments will generally help you get the best interest rates. You can get a good feel for average interest rates online, but make sure to speak with a mortgage professional in order to see the specific rates you qualify for. To get the best refinance rates, you’ll first want to 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 speak with multiple lenders and shop around.

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

Is now a good time to refinance?

In order for a refinance to make sense, you’ll generally want to get a lower interest rate than your current rate. Aside from interest rates, changing your loan term is another reason to refinance.When deciding whether to refinance, be sure to take into account other factors besides market interest rates, including how long you plan to stay in your current home, the length of your loan term and the amount of your monthly payment. And don’t forget about fees and closing costs, which can add up.

As interest rates have rather steadily increased since the beginning of the year, the pool of people eligible for refinancing has shrunk significantly. If you bought your house when interest rates were lower than current rates, you may likely not gain any financial benefit from refinancing your mortgage.

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