July 3, 2022

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Current Refinance Rates on June 22, 2022: Rates Increase

A number of closely followed mortgage refinance rates went up today. Both 15-year fixed and 30-year fixed refinances saw their average rates trend upward. In addition, the average rate on 10-year fixed refinance also saw growth.

Like mortgage rates, refinance rates have been increasing since the beginning of 2022 — and we expect that trend to 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 appears 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 average rate for a 30-year fixed refinance loan is currently 6.00%, an increase of 1 basis point compared to one week ago. (A basis point is equivalent to 0.01%.) A 30-year fixed refinance will typically have lower monthly payments than a 15-year or 10-year refinance. Because of this, a 30-year refinance can be a good idea if you’re having trouble making your monthly payments. Be aware, though, that interest rates will typically be higher compared to a 15-year or 10-year refinance, and you’ll pay off your loan at a slower rate.

15-year fixed-rate refinance

For 15-year fixed refinances, the average rate is currently at 5.28%, an increase of 12 basis points over last week. Refinancing to a 15-year fixed loan from a 30-year fixed loan will likely raise your monthly payment. On the other hand, you’ll save money on interest, since you’ll pay off the loan sooner. You’ll also typically 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 refinance

The average rate for a 10-year fixed refinance loan is currently 5.46%, an increase of 30 basis points from what we saw the previous week. 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 help you pay off your house much quicker and save on interest. Just be sure to carefully consider your budget and current financial situation to make sure that you can afford a higher monthly payment.

Where rates are headed

At the start of the pandemic, refinance rates dropped to historic lows, but they have been steadily 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 lock in a decent rate before they continue going up.

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 US:

Average refinance interest rates

ProductRateA week agoChange
30-year fixed refi6.00%5.99%+0.01
15-year fixed refi5.28%5.16%+0.12
10-year fixed refi5.46%5.16%+0.30

Rates as of June 22, 2022.

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?

Generally, it’s a good idea to refinance if you can get a lower interest rate than that your current interest rate, or if you need to change your loan term.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 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.