Current refinancing rates as of May 9, 2022: increase in rates

A few closely watched mortgage refinance rates rose today. Fixed 15-year and 30-year refinancing saw their average rates increase. At the same time, average 10-year fixed refinancing rates also rose.

Although refinance rates fluctuate slightly on a daily basis, homeowners can expect to see rates increase over the course of this year. Over the past few months, rates have trended higher from historic lows seen during the pandemic and are now closer to 2018 rate levels. This means that if you are looking to cut dollars and interest from your current monthly mortgage payments, these could be the lowest rates of 2022. Be sure to think about your goals and situation, and compare offers to find a lender who can meet your needs. .

30-year fixed rate refinancing

The current average interest rate for a 30-year refinance is 5.51%, up 9 basis points from a week ago. (One basis point equals 0.01%.) A 30-year fixed refinance will generally have lower monthly payments than a 15- or 10-year refinance. This makes 30-year refinances good for people who have trouble making their monthly payments or just want a little more leeway. Be aware, however, that the interest rates will generally be higher than those of a 15 or 10 year refinance and that you will pay off your loan at a slower rate.

15-year fixed-rate refinancing

The average 15-year fixed refinance rate is currently 4.76%, up 7 basis points from a week ago. With a 15-year fixed refinance, you will have a larger monthly payment than a 30-year loan. But you’ll save more money over time because you pay off your loan faster. You’ll also typically get lower interest rates than a 30-year loan. This can help you save even more in the long run.

10-year fixed rate refinancing

The average 10-year fixed refinance rate is currently at 4.75%, an increase of 10 basis points from what we saw the previous week. You’ll pay more each month with a 10-year fixed refinance compared to a 30- or 15-year refinance, but you’ll also get a lower interest rate. A 10-year refinance can be a great deal because paying off your home sooner will help you save on long-term interest. Just be sure to carefully review your budget and current financial situation to make sure you can afford a higher monthly payment.

Where are the rates going

At the start of the pandemic, refinance rates fell to historic lows, but now interest rates are hovering around pre-pandemic levels. The Federal Reserve recently hiked rates for the first time since 2018 and plans to raise them multiple times in 2022. Given this policy, along with strong economic growth and inflation, which is at an all-time high in four decades, rates are expected to continue to rise this year. year. Although there have been some temporary interest rate cuts, it is impossible to predict when another cut might occur. This means it’s a good idea to try to take advantage of the refinance now and lock in a decent rate.

We track refinance rate trends using information collected by Bankrate, which is owned by CNET’s parent company. Here is a chart with the average refinance rates reported by lenders nationwide:

Average refinancing interest rate

Product Rate A week ago Switch
30-year fixed refi 5.51% 5.42% +0.09
15-year fixed refi 4.76% 4.69% +0.07
10-year fixed refi 4.75% 4.65% +0.10

Rates as of May 9, 2022.

How to find personalized refinance rates

It is important to understand that prices advertised online may not apply to you. Market conditions are not the only factor in interest rates; your particular application and your credit history will also play an important role.

Having a high credit score, a low rate of credit utilization, and a history of regular, on-time payments will generally help you get the best interest rates. To get your personalized refinance rates, you’ll need to speak with a mortgage professional, as the rates you qualify for may differ from the rates advertised online. And don’t forget fees and closing costs which can be very expensive upfront.

It should also be noted that in recent months lenders have been stricter with their requirements. This means that if you don’t have a great credit rating, you may not be able to take advantage of lower interest rates – or qualify for a refinance in the first place.

Before applying for a refinance, you need to make your application as strong as possible in order to get the best rates available. If you haven’t already, try to improve your credit by monitoring your credit reports, using credit responsibly, and carefully managing your finances. Also, be sure to compare offers from multiple lenders to get the best rate.

When to Consider a Mortgage Refinance

Generally, it’s a good idea to refinance if you can get a lower interest rate than your current interest rate or if you need to change the term of your loan. Although interest rates have been low for the past few months, you should look at more than market interest rates to decide if a refinance is right for you.

Refinancing may not always make financial sense. Consider your personal goals and financial situation. How long do you plan to stay at home? Are you refinancing to lower your monthly payment, pay off your home sooner – or for a combination of reasons? Also keep in mind that closing costs and other fees may require an upfront investment.

Note that some lenders have tightened their requirements since the start of the pandemic. If you don’t have a good credit score, you may not qualify for the best rate. Refinancing can be a great decision if you get a good rate or can pay off your loan sooner, but think carefully if it’s the right choice for you.

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