Mortgage Refinance Rates on Jan. 24, 2024: Rates Move Up (2024)

Both 15-year fixed and 30-year fixed refinances saw their average rates rise this week. The average rate on 10-year fixed refinance also moved up.

  • 30-year fixed refinance: 7.03%
  • 15-year fixed refinance: 6.42%
  • 10-year fixed refinance: 6.26%

Refinance rates remain relatively high, and millions of homeowners are keeping their original mortgages until rates ease more. Though home loan rates have been dipping since November, current rates are still well above the 3.5% average on existing mortgages, according to Mark Zandi, chief economist at Moody’s Analytics. And, although refinancing activity has picked up recently, the overall level of refinance applications is still very low compared to early 2021. “Rates will need to fall substantially more for refi activity to meaningfully increase,” said Zandi.

With the Federal Reserve taking its third consecutive pause from its aggressive rate-hike policy and promising interest rate cuts throughout this year, the opportunity to refinance might come sooner rather than later.

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.

Refinance rates for homeowners

In today’s high-rate environment, refinancing is less attractive. Rates are currently between 6% and 7%, but your personal interest rate will depend on your credit history, financial profile and application.

Here are the average refinance rates reported by lenders nationwide. We track refinance rate trends using data collected by Bankrate:

Today’s refinance rates

ProductRateA week agoChange
30-year fixed refi7.18%7.16%+0.02
15-year fixed refi6.42%6.28%+0.14
10-year fixed refi6.26%6.15%+0.11

Rates as of Jan. 24, 2024

How to choose a refinance

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. But today’s mortgage market conditions aren’t ideal. If you decide to refinance, compare rates, fees and the annual percentage rate -- which reflects the total cost of borrowing -- from different lenders to find the best deal.

30-year fixed-rate refinance

For 30-year fixed refinances, the average rate is currently at 7.18%, an increase of 2 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

The current average interest rate for 15-year refinances is 6.42%, an increase of 14 basis points from what we saw the previous 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 6.26%, an increase of 11 basis points compared to one week ago. 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.

Where refinance rates are headed

When mortgage rates hit historic lows during the pandemic, there was a refinancing boom, as homeowners nabbed lower interest rates on their home loans. But refinancing might not actually save you money right now. “Refinancing for some people will make sense if they have rates above 8%,” said Logan Mohtashami, lead analyst at HousingWire. “However, with all refinancing options, it’s a personal financial choice because of the cost that goes with the loan process,” Mohtashami said.

If economic data goes in the right direction, 2024 should lead to lower rates. “The best bet there is to keep an eye on day-to-day rate changes and have a game plan on how to capitalize on a big enough drop,” said Matt Graham of Mortgage News Daily.

Reasons why you might refinance your home

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.

How to shop for refinance rates

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. 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.

Refinancing can be a great move if you get a good rate or can pay off your loan sooner, but consider whether it’s the right choice for you at the moment.

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As an expert in the field of mortgage finance and refinancing, I can confidently navigate through the intricate details presented in the provided article. The article discusses various aspects of mortgage refinance rates, providing specific data points and insights into the current market conditions. Let's break down the key concepts covered in the article:

  1. Current Refinance Rates:

    • 30-Year Fixed Refinance: 7.18%
    • 15-Year Fixed Refinance: 6.42%
    • 10-Year Fixed Refinance: 6.26%

    These rates are reported by lenders nationwide, and they have seen a recent increase. The article emphasizes that despite a dip in home loan rates since November, they remain considerably higher than the average on existing mortgages.

  2. Refinancing Activity:

    • Refinance rates are currently between 6% and 7%.
    • Homeowners are holding onto their original mortgages due to the relatively high rates.
    • Refinancing activity has picked up recently, but overall applications are still low compared to early 2021.
  3. Expert Opinion:

    • Mark Zandi, Chief Economist at Moody’s Analytics, suggests that rates will need to fall substantially more for a significant increase in refinance activity.
    • The Federal Reserve's pause in its rate-hike policy and promises of interest rate cuts throughout the year may create opportunities for refinancing.
  4. Comparison of Refinance Rates:

    • The article provides a snapshot of refinance rates as of Jan. 24, 2024, and compares them to the previous week's rates for 30-year, 15-year, and 10-year fixed refinances.
  5. Factors Influencing Personal Interest Rates:

    • Personal interest rates depend on credit history, financial profile, and application.
    • The article advises homeowners to compare rates, fees, and the annual percentage rate (APR) to find the best refinance deal.
  6. Reasons to Refinance:

    • Lower interest rates: Refinancing makes sense if a homeowner can secure a rate at least 1% lower than their current mortgage.
    • Switching mortgage types, eliminating mortgage insurance, changing the loan term, tapping into equity through a cash-out refinance, and removing someone from the mortgage are common reasons for refinancing.
  7. Outlook and Considerations:

    • Logan Mohtashami, lead analyst at HousingWire, suggests that refinancing may make sense for those with rates above 8%, but it's a personal financial choice considering associated costs.
    • Economic data trends could lead to lower rates in 2024.
  8. Shopping for Refinance Rates:

    • Advertised rates online may have specific eligibility conditions.
    • Personal interest rates are influenced by market conditions, credit history, and financial profile.
    • The article recommends strengthening your application by getting finances in order, using credit responsibly, and speaking with multiple lenders.

In conclusion, the article provides a comprehensive overview of the current state of refinance rates, expert opinions, and considerations for homeowners looking to refinance their mortgages.

Mortgage Refinance Rates on Jan. 24, 2024: Rates Move Up (2024)


Mortgage Refinance Rates on Jan. 24, 2024: Rates Move Up? ›

Will mortgage rates go down in 2024? In Fannie Mae's latest rate forecast, the government-sponsored enterprise said it expects 30-year fixed rates to end 2024 at 6.4%. So while rates will likely go down in 2024, the drop might not be as drastic as people were expecting at the end of last year.

How will mortgage rates change in 2024? ›

Will mortgage rates go down in 2024? In Fannie Mae's latest rate forecast, the government-sponsored enterprise said it expects 30-year fixed rates to end 2024 at 6.4%. So while rates will likely go down in 2024, the drop might not be as drastic as people were expecting at the end of last year.

What is the interest rate forecast for the next 5 years? ›

Projected Interest Rates in the Next Five Years

ING's interest rate predictions indicate 2024 rates starting at 4%, with subsequent cuts to 3.75% in the second quarter. Then, 3.5% in the third, and 3.25% in the final quarter of 2024. In 2025, ING predicts a further decline to 3%.

How much should rates drop before refinancing? ›

As a rule of thumb, experts often say that it's not usually worth it to refinance unless your interest rate drops by at least 0.5% to 1%. But that may not be true for everyone. Refinancing for a 0.25% lower rate could be worth it if: You are switching from an adjustable-rate mortgage to a fixed-rate mortgage.

Will personal loan rates go down in 2024? ›

Lower personal loan rates may be on the horizon in 2024 after the Fed made progress curbing inflation at the end of 2023.

Will refinance rates go down in 2024? ›

Mortgage rates are likely to trend down in 2024. Depending on which forecast you look at for housing market predictions in 2024, 30-year mortgage rates could end up somewhere between 6.1% and 6.4% by the end of the year.

What will mortgage rates be in May 2024? ›

While McBride had expected mortgage rates to fall to 5.75 percent by late 2024, the new economic reality means they're likely to hover in the range of 6.25 percent to 6.4 percent by the end of the year, he says.

How high will interest rates go in 2024? ›

This reflects an upward revision in Fannie's analysis: Just last month, the mortgage giant expected rates would dip below 6% at the end of this year. All told, Fannie Mae predicts mortgage rates will average 6.6% in 2024 and 6.2% in 2025.

Will mortgage rates ever be 3 again? ›

After all, higher rates equate to higher minimum payments. So, you may be wondering if, and when, mortgage rates might fall to 3% or lower again - and whether or not it's worth waiting to buy a home until they do. Although rates could fall to 3% again one day, it's not likely to happen any time soon.

Will interest rates keep going up 2024? ›

Mortgage rates may continue to rise in 2024. High inflation, a strong housing market, and policy changes by the Federal Reserve have all pushed rates higher in 2022 and 2023.

Is now a bad time to refinance? ›

You can't get a lower interest rate: If your goal is to reduce your interest costs, right now isn't the best time to refinance. You're likely to end up with a higher rate, plus you'll need to cover closing costs on your new mortgage.

Should you ever refi at a higher rate? ›

If you have a lot of high-interest debt, getting a cash out refinance at a higher interest rate than your current mortgage rate might make sense. With a cash out refinance, you replace your current mortgage with a new mortgage for a higher amount and get the difference in cash at closing.

Is it worth it to refinance for 1% lower? ›

Historically, the rule of thumb is that refinancing is a good idea if you can reduce your interest rate by at least 2%. However, many lenders say 1% savings is enough of an incentive to refinance.

Who is the best loan company? ›

Best personal loan lenders
  • SoFi: Best overall. ...
  • PenFed: Best credit union. ...
  • Upgrade: Best for fair credit. ...
  • Discover: Best for no origination fees and low rates. ...
  • Splash Financial: Best quick loans for good credit. ...
  • Universal Credit: Best debt consolidation loans for bad credit.

What is a good interest rate on a loan? ›

A good personal loan interest rate depends on your credit score: 740 and above: Below 8% (look for loans for excellent credit) 670 to 739: Around 14% (look for loans for good credit) 580 to 669: Around 18% (look for loans for fair credit)

What is considered a high interest rate on a loan? ›

A high-interest loan charges interest and fees that are higher than most other loans. Typically, a loan with an annual percentage rate, or APR, over 36% is considered a high-interest loan. If you need cash fast or have low credit, you may be offered a high-interest loan or feel like you don't have any other options.

Are mortgage rates going up in 2024? ›

Rates also increased dramatically last year, though they trended back down toward the end of 2023. As inflation comes down, mortgage rates will recede as well. Most major forecasts expect rates to go down throughout 2024.

Will my mortgage go up in 2024? ›

Mortgage rates are likely to go down in 2024. Rates have already been declining since the start of August - they are currently at 5.95% for an average 2 year fixed and 5.57% for an average 5 year fix, down from 6.85% and 6.37% respectively. This has been helped by inflation coming down to 3.9%.

How high could mortgage rates go by 2025? ›

The average 30-year fixed mortgage rate as of Thursday was 6.99%. By the final quarter of 2025, Fannie Mae expects that to slide to 6.0%. Meanwhile, Wells Fargo's model expects 5.8%, and the Mortgage Bankers Association estimates 5.5%.

Where will mortgage rates be in 2025? ›

Here's where three experts predict mortgage rates are heading: Around 6% or below by Q1 2025: "Rates hit 8% towards the end of last year, and right now we are seeing rates closer to 6.875%," says Haymore. "By the first quarter of 2025, mortgage rates could potentially fall below the 6% threshold, or maybe even lower."

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