Refi Rates Increase But Stay Below 7%: Today’s Refinance Rates, June 28, 2024 [CNET]

As mortgage rates start to ease, more homeowners could benefit from a refinance.

Today’s average refinance rates

30-year fixed-rate	7.00%	(+0.08)
15-year fixed-rate	6.47%	(+0.12)
30-year fixed-rate jumbo	7.10%	(+0.08)
5/1 ARM	6.59%	(+0.00)
10-year fixed-rate	6.54%	(+0.31)
30-year fixed-rate refinance	6.99%	(+0.06)
15-year fixed-rate refinance	6.53%	(+0.11)
10-year fixed refinance	6.58%	(+0.34)

Today’s average mortgage rates on Jun. 28, 2024, compared with one week ago. We use rate data collected by Bankrate as reported by lenders across the US.

See all of today’s mortgage rates

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Housing market experts predict mortgage rates will fall in 2024. Get the best rate for your situation by comparing multiple loan offers from different lenders. Receive a custom quote from one of CNET’s partner lenders by entering your information below.

About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.

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Current refinance rate trends

When mortgage rates hit historic lows during the pandemic, there was a refinancing boom, as homeowners were able to nab lower interest rates. But with current average mortgage rates around 7%, getting a new home loan isn’t as financially viable.

Early in the year, hopes were high for a summer rate cut from the Fed. But over the past few months, inflation has remained high and the labor market strong, making it clear to investors that the Fed will take longer than expected to lower rates.

Higher mortgage rates make refinancing less attractive to homeowners, making them more likely to hold onto their existing mortgages.

Where will refinance rates end up in 2024?

“The odds are good that rates will end 2024 lower than they are now,” said Keith Gumbinger, vice president of mortgage site, HSH.com. But predicting exactly where mortgage rates will end up is difficult because it hinges on economic data we don’t yet have.

If inflation continues to improve and the Fed is able to cut rates, mortgage refinance rates could end the year between 6% and 6.5%.

But data showing higher inflation could cause investors to reconsider the likelihood of Fed rate cuts and send mortgage rates higher, according to Orphe Divounguy, senior economist at Zillow Home Loans.

If you’re considering a refinance, remember that you can’t time the economy: Interest rates fluctuate on an hourly, daily and weekly basis, and are influenced by an array of factors. Your best move is to keep an eye on day-to-day rate changes and have a game plan on how to capitalize on a big enough percentage drop, said Matt Graham of Mortgage News Daily.

Refinancing 101

When you refinance your mortgage, you take out another home loan that pays off your initial mortgage. With a traditional refinance, your new home loan will have a different term and/or interest rate. With a cash-out refinance, you’ll tap into your equity with a new loan that’s bigger than your existing mortgage balance, allowing you to pocket the difference in cash.

Refinancing can be a great financial move if you score a low rate or can pay off your home loan in less time, but consider whether it’s the right choice for you. Reducing your interest rate by 1% or more is an incentive to refinance, allowing you to cut your monthly payment significantly.

Choosing the right refinance type and term

The rates advertised online often require specific conditions for eligibility. Your personal interest rate will be influenced by market conditions as well as your specific credit history, financial profile and application. Having a high credit score, a low credit utilization ratio and a history of consistent and on-time payments will generally help you get the best interest rates.

30-year fixed-rate refinance

The average 30-year fixed refinance rate right now is 6.99%, an increase of 6 basis points from what we saw 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, but it will take you longer to pay off and typically cost you more in interest over the long term.

15-year fixed-rate refinance

For 15-year fixed refinances, the average rate is currently at 6.53%, an increase of 12 basis points over last week. Though a 15-year fixed refinance will most likely raise your monthly payment compared to a 30-year loan, you’ll save more money over time because you’re paying off your loan quicker. Also, 15-year refinance rates are typically lower than 30-year refinance rates, which will help you save more in the long run.

10-year fixed-rate refinance

The average rate for a 10-year fixed refinance loan is currently 6.58%, an increase of 34 basis points from what we saw the previous week. A 10-year refinance typically has the lowest interest rate but the highest monthly payment of all refinance terms. A 10-year refinance can help you pay off your house much quicker and save on interest, but make sure you can afford the steeper monthly payment.

To get the best refinance rates, make your application as strong as possible by getting your finances in order, using credit responsibly and monitoring your credit regularly. And don’t forget to speak with multiple lenders and shop around.

Does refinancing make sense?

Homeowners usually refinance to save money, but there are other reasons to do so. Here are the most common reasons homeowners refinance:

• To get a lower interest rate: If you can secure a rate that’s at least 1% lower than the one on your current mortgage, it could make sense to refinance.
• To switch the type of mortgage: If you have an adjustable-rate mortgage and want greater security, you could refinance to a fixed-rate mortgage.
• To eliminate mortgage insurance: If you have an FHA loan that requires mortgage insurance, you can refinance to a conventional loan once you have 20% equity.
• To change the length of a loan term: Refinancing to a longer loan term could lower your monthly payment. Refinancing to a shorter term will save you interest in the long run.
• To tap into your equity through a cash-out refinance: If you replace your mortgage with a larger loan, you can receive the difference in cash to cover a large expense.
• To take someone off the mortgage: In case of divorce, you can apply for a new home loan in just your name and use the funds to pay off your existing mortgage.