Current Mortgage Refinance Rates, April 7, 2021 | Rate Trends Higher

We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

In general, refinance rates for mortgage were varied with one notable rate climbing.

The average rate nationwide for a 15-year fixed refinance saw a downtick, while 30-year fixed-rate refinances increased. At the same time, average rates for 10-year fixed refinances saw a decrease.

Refinancing interest rates are constantly fluctuating. However, they’re exceptionally low right now. For those looking to refinance their existing mortgage, this might be the perfect time to secure a record-low rate.

The average mortgage refinance rates are as follows:

Check out mortgage refinancing rates for your area here.

30-Year Fixed Refinance Rates

Right now, the average 30-year, fixed refinance has an interest rate of 3.34%, an increase of 2 basis points over the previous week.

You can use our mortgage calculator to get an idea of what your monthly payments will be and to understand how much you could save if you made extra payments. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.

15-Year Fixed-Rate Refinance

For 15-year fixed refinances we’re seeing an average rate of 2.60%, a decrease of 1 basis point over the previous week.

Monthly payments on a 15-year refinance loan will be bigger compared to a 30-year refinance at the same rate. However, a shorter loan term can save you thousands of dollars interest over the life of the loan.

10-Year Fixed-Rate Refinance

The average 10-year, fixed refinance rate is 2.49%, a decrease of 3 basis points from a week ago.

Monthly payments with a 10-year refinance term would cost a significant amount more per month than you would with a 15-year term, but you’ll pay less interest in the long term.

How Mortgage Refinance Rates Have Changed

The days of record low mortgage rates could be over. In recent weeks, mortgage rates topped 3% for the first time since July, according to Freddie Mac’s weekly survey.

But rates should still remain favorable for borrowers throughout this year. Some experts predict mortgage rates will stay low, and will only start seeing consistent gains in the second half of the year. Whatever ends up happening with refinance rates in the long term will depend on broad factors, such as inflation and our economic recovery.

The table below shows how refinance rates have changed in the past week. This information is supplied by Bankrate, which compiles data collected from lenders nationwide. Bankrate is owned by Nextadvisor’s parent company, Red Ventures.

Average refinance interest rates
ProductRateLast weekChange
30-year mortgage refinance rate3.34%3.32%+0.02
15-year fixed refinance rate2.60%2.61%-0.01
10-year fixed refinance rate2.49%2.52%-0.03

Rates as of April 7, 2021.

Take a look at mortgage refinance rates for a number of different loans.

What Influences Today’s Refinance Rates?

There’s no single factor that determines mortgage refinance rates. Instead, a variety of personal components and broader economic factors come into play.

These factors include:

  • Type of refinance loan
  • Amount of equity in your home
  • U.S. Treasury bond Yields
  • Inflation rates
  • Personal finances: Credit score, and debt-to-income ratio
  • Condition of the economy

Refinance Rate Predictions

On a day to day basis refinance rates can move up or down based on a wide variety of factors. But the general trend is going to be rising rates in the months to come.

With refinance rates hitting a record low just a few months ago, they had little place to move except up. And since January that is exactly what interest rates have done. It’s important to point out that from a historical perspective, refinance rates are still exceptionally low, even with the recent surge. So as the vaccine distribution continues to gain steam and the economy begins to open back up, refinance rates still have plenty of room to grow.

Is Now the Right Time to Refinance?

The past year was a historically excellent time to refinance because rates had never been lower. However, since January mortgage rates have crept up and crossed the 3% threshold for the first time since last summer.

Even though the days of record breaking refinance rates are behind us, this is still an exceptional time to refinance for many homeowners. If you can lock in today’s rates that are just north of 3%, you are getting a deal with a close to all-time low rate.

So there is still time to save with a refinance, but that window is closing. Many experts are predicting rates to continue to increase as the economy returns to pre-pandemic levels over the next year.

Why Are Refinance Rates Increasing?

Over the past few months, we’ve seen a steady increase in refinance rates.

As the economy continues to recover, you should expect to see rates rise. Although a full recovery may not happen in the near term, rates have risen on the expectation of a bright economic future. The new round of stimulus has increased the likelihood of rising inflation in many investors minds, which has driven up Treasury bond yields. And mortgage rates typically move in tandem with Treasury bonds.

With more and more people getting vaccinated everyday, there is hope that the worst is behind us. So the days of all-time low rates look to be over. However, even with refinance rates making strong gains, they still remain low. So for many homeowners, now is still a good time to refinance, even if rates aren’t as low as they were just a few months ago.

How to Qualify for the Lowest Refinance Rate

Mortgage refinance rates vary depending on your personal financial situation. Those with higher credit scores and lower DTI ratios will typically be able to secure lower refinance mortgage rate.

Your personal finances aren’t the only consideration that affects your refinance rate. Your house’s value compared to your loan balance also factors into the decision. You want to have at least 20% equity, or a loan-to-value ratio of 80% or less.

Even the mortgage itself will impact your refinance interest rate. A loan with a shorter repayment term usually has lower rates than a loan with longer terms. Also, if you want to pull cash out of your home with a cash-out refinance, you’ll be charged a higher interest rate, compared to other types of refinancing.

How We Got These Rates

The rates we have included are averages provided by Bankrate and are calculated after the close of the previous business day. The lenders that the “Bankrate.com Site Average” tables include are not the same every day.

National lenders provide this mortgage rate information to Bankrate.com. It is possible the mortgage rates we reference has changed since this was published.

Mortgage Interest Rates by Loan Type

Mortgage Refinance Rates

Home Purchase Rates

NextAdvisor Articles About Mortgage Refinancing: