Refi Rates Today, April 8, 2021 | Rates Move Lower

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Today, a few benchmark refinance rates receded.

Both 15-year fixed and 30-year fixed refinances saw their mean rates drop. And average rates for 10-year fixed refinances also declined.

Refinancing rates are constantly fluctuating. However, they’re presently low, making them a potentially great deal for borrowers. For those looking to refinance their existing mortgage, this may possibly be a great opportunity to reduce your interest 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 3.30%, a decrease of 4 basis points from a week ago.

You can use our mortgage calculator to get an idea of what your monthly payments will be and to understand how paying more each month will impact your mortgage. 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 2.56%, a decrease of 7 basis points 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 2.46%, a decrease of 6 basis points from the rate observed over the previous week.

Monthly payments with a 10-year refinance term would cost even more than what you’d pay on a 15-year loan. The upside is you’d end up paying even less interest over the life of the loan.

How Mortgage Refinance Rates Are Changing

The days of all-time historically low mortgage rates could be over. In recent weeks, mortgage rates inched above 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 that toward the end of the year it’s more likely that rates will make steady gains. Where refinance rates move in the long term will depend on broad factors, such as inflation and our economic recovery.

We determine refinance rate trends using data aggregated by Bankrate, which is owned by the same parent company as NextAdvisor. Lenders from across the country supply information to Bankrate, which is provided in the table below:

Average refinance interest rates
ProductRateLast weekChange
30-year mortgage refinance rate3.30%3.34%-0.04
15-year fixed refinance rate2.56%2.63%-0.07
10-year fixed refinance rate2.46%2.52%-0.06

Rates as of April 8, 2021.

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

How Are Refinance Rates Determined?

Refinance rates are determined by a wide variety of factors, including your personal situation. You’ll also need to consider the type of refinance loan and loan repayment term because that can also impact your rate. For example, if you want to take equity out of your property with with a cash-out refinance, you can expect to pay a higher refinance rate. And loans with longer repayment terms, typically have higher interest rates.

However, some things are out of your control when it comes to refinance rates. Broad economic influences, like inflation, play a big role in determining refinance loan interest rates. Government policies also make a difference, when government spending goes up, it can put upward pressure on inflation and cause rates to rise.

Refinance Rate Predictions

Mortgage refinance rates fluctuate from day to day and week to week, but in the coming months the overall trend is going to be rising mortgage rates.

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.

What’s Driving Increasing Refinance Rates?

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

This increase in rates has been driven by several factors, including inflation, and the economy. As the economy begins to show signs of life and spending increases thanks to a new round of economic stimulus, investors are expecting inflation to increase. And when inflation goes up, rates follow suit.

While refinance rates haven’t grown to levels beyond what many experts predicted, they have increased sooner than anticipated. Keep in mind, that from a historical perspective, refinance rates are still exceptionally low. So the window to save money with a mortgage refinance is still open for many homeowners.

How to Qualify for the Lowest Refinance Rate

Mortgage refinance rates are influenced by your personal finances. If you have a higher credit score and lower DTI ratios will usually receive a greater discount on their refinance interest rate.

Your situation isn’t the only consideration that affects the refinance rates you’re offered. The amount of equity you have in the home also comes into play. Having at least 20% equity in your property is ideal.

The type of mortgage loan will impact what your interest rate will be. A loan with a shorter repayment term typically has better 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 “ Site Average” tables include are not the same every day.

Bankrate receives this mortgage rate information from lenders across the nation, but it is possible that the referenced rates have changed since publishing this article.

Mortgage Interest Rates by Loan Type

Mortgage Refinance Rates

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