Refi rates remained steady below 7% after the Fed meeting. Today’s Refi Rates for June 20, 2024

Date:


John Graeme/Light Rocket/Getty Images

Today’s Average Refinance Rates


Today’s average mortgage rates on June 20, 2024, compared to one week ago. We use rate data collected by Bankrate, as reported by lenders across the US.


Low mortgage rates make buying a home more affordable. Experts recommend shopping around with different mortgage lenders to get the best deal. Enter your information below to get a custom quote from one of CNET’s participating lenders.

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


When mortgage rates fell to historic lows during the pandemic, refinancing boomed, as homeowners were able to purchase homes at lower interest rates. But with current average mortgage rates around 7%, taking out a new home loan is not financially viable.

At the beginning of the year, expectations were high that the Fed would cut interest rates in the summer. But inflation has remained high in the past few months and the labor market is strong, making it clear to investors that the Fed will take longer than expected to cut interest rates.

Higher mortgage rates make it less attractive for homeowners to refinance, making them more likely to keep their existing mortgages.

Refinancing rate forecast for 2024

“The odds are good that rates will be lower in 2024 than they are now,” said Keith Gumbinger, vice president of mortgage site HSH.com. But it’s difficult to predict exactly where mortgage rates will go because it depends on economic data we don’t have yet.

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

But according to Orpheus Divaughn, senior economist at Zillow Home Loans, data showing higher inflation could prompt investors to reconsider the possibility of a Fed interest rate cut, and could push mortgage rates higher.

If you’re considering refinancing, remember that you can’t time the economy: Interest rates fluctuate on an hourly, daily and weekly basis, and are affected by a number of factors. Your best move is to keep an eye on day-to-day rate changes and create a game plan to take advantage of a big percentage drop, says 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 access your equity with a new loan that’s larger than your existing mortgage balance, allowing you to pocket the difference in cash.

If you get a lower rate or can pay off your home loan in a shorter period of time, refinancing can be a great financial move, but consider whether it’s the right choice for you. Lowering your interest rate by 1% or more is an incentive to refinance, allowing you to cut your monthly payment substantially.

Choosing the right refinance type and tenure

Rates advertised online often require specific conditions for eligibility. Your individual interest rate will be affected 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 timely payments will generally help you get the best interest rates.

30-Year Fixed Rate Refinance

For a 30-year fixed refinance, the average rate is currently 6.96%, a decrease of 13 basis points from a week ago. (One basis point is equal to 0.01%). A 30-year fixed refinance will typically have a lower monthly payment than a 15-year or 10-year refinance, but it will take you longer to pay off and you will typically pay more interest over the long term.

15-Year Fixed Rate Refinance

The average 15-year fixed refinance rate right now is 6.43%, a decrease of 12 basis points from last week. Although a 15-year fixed refinance will likely increase your monthly payment compared to a 30-year loan, you’ll save more money over time because you’re paying off your loan sooner. Plus, 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

Right now the average 10-year fixed refinance rate is 6.24%, a decrease of 13 basis points from a week ago. 10-year refinances typically have the lowest interest rates but the highest monthly payments of all refinance terms. A 10-year refinance can help you pay off your home much faster and save on interest, but make sure you can afford the higher 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 talk to several lenders and shop around.

Reasons to Refinance

Homeowners typically 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 get a rate that’s at least 1% lower than your current mortgage, it might be worth refinancing.
  • To change the type of mortgage: If you have an adjustable-rate mortgage and want more security, you can 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 if you have 20% equity.
  • To change the length of the loan term: Refinancing a loan for a longer term can lower your monthly payment. Refinancing for a shorter term will save you interest in the long run.
  • To leverage your equity through a cash-out refinance: If you replace your mortgage with a larger loan, you can get the difference as cash to cover a major expenditure.
  • To release a person from bond: In case of a divorce, you can apply for a new home loan in your name only and use the funds to pay off your existing mortgage.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_imgspot_img

Popular

More like this
Related

10-minute delivery app Zepto raises $665 million at a $3.6 billion valuation

Zepto has raised a whopping $665 million in a...

Today’s NYT Connection Hints, Answers & Help June 21, #376

Need answers to the June 21 New York Times...

We’re still waiting for the next big leap in AI

When OpenAI announced its latest big language model, GPT-4,...