Current Refinance Rates, January 2, 2023 | Rates Ratchet Higher

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Today, several benchmark mortgage refinance rates advanced.

Both the 15-year fixed and 30-year fixed saw their mean rates increase. And average rates for 10-year fixed refinances also saw an increase.

As of early this year, refinance rates spiked and appear likely to continue on their upward trajectory. We’ve already seen multiple increases in short-term interest rates and the Fed has plans for more to come.

Right now, it’s as important as ever for homeowners to carefully consider whether or not now is the right time to refinance. Right now, homeowners may struggle to find an interest rate low enough for refinancing to make sense. However, the interest rate you are eligible for shouldn’t be the only factor behind your decision. Closing costs on a refinance loan can add up to thousands of dollars, greatly increasing your upfront costs.

Let’s take a look at where refi rates are and what it means for you.

Take a look at today’s refinance rates:

Take a look at local refinance rates.

Refinance Rate Forecast: What Drives Changes in Mortgage Rates?

The Consumer Price Index (CPI) for September shows inflation is still high at 8.2%And that means refi rates are likely to see more increases as long as inflation remains high.

In response to high inflation that has lasted longer than initially anticipated, the Federal Reserve has increased interest rates in May, June, and July. A prolonged period of high inflation would make the Federal Reserve more likely to increase rates even more dramatically.

Is Now a Good Time to Refinance?

Generally speaking, homeowners could save thousands with a rate and term refinance if their new rate is 0.75% to 1% below their current rate. That said, the recent spike in refinance rates has drastically reduced the number of homeowners with interest rates that are well above today’s average rates.

In this hot housing market, the ability to turn the equity in your home into cash with a home equity line of credit (HELOC) has become increasingly popular. A HELOC can be a reasonable option for financing home repairs or improvements, just be sure to understand all of the fine print regardless fees, the interest rate and the repayment schedule..

Pro Tip: What to Know About Refinance Fees

With a new home loan, you are required to pay upfront fees of 3% to 6% of the loan amount. This is a significant expense that needs to be considered when refinancing. Your monthly savings may not have exceeded the upfront fees if you refinance too often or sell your home soon after refinancing.

30-Year Fixed Refinance Rates

Right now, the average 30-year fixed refinance has an interest rate of 6.70%, an increase of 5 basis points from a week ago.

You can use our mortgage calculator to price out your monthly mortgage payments and to understand what the effects of making extra payments would be. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.

15-Year Fixed Refi Rates

Currently, the average rate for a 15-year fixed refinance loan is 6.19%, an increase of 8 basis points from a week ago.

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 Refinance Rates

The average 10-year, fixed refinance rate is 6.36%, an increase of 13 basis points from a week ago.

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 our refi rates are calculated

Our daily refi rates are based Bankrate’s daily rate data, which is owned by the same parent company as NextAdvisor. These daily refi rate averages are based on a customer profile of the following:

  • Loan to value (LTV) or 80% or less
  • Owner occupied home
  • Credit score of 740+
  • Single-family detached home

The information provided to Bankrate from lenders nationwide is specified in the table below:

Rates as of January 2, 2023.

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

Refinance Rate Frequently Asked Questions (FAQ):

Is Now Still a Good Time to Refinance?

Whether or not you refinance isn’t dependent on just the numbers, such as the refinance rate. Your personal circumstances are also an important consideration. You’ll want to ask yourself if refinancing will help you accomplish your goals

Refinancing can be a good idea if you can cut your interest rate enough to offset the upfront closing costs. But sometimes the purpose of a refinance isn’t to reduce your mortgage rate. As home values rise, many homeowners are choosing to turn their equity into cash via a HELOC. Home equity lines of credit typically have higher rates compare to other options, but it can be a good way to pay for home upgrades or to pay off other higher interest debt.

At the end of the day, it’s a good time to refinance if refinancing aligns with your financial goals and helps you achieve them.

How to Get the Best Refinance Rate

Refinance rates vary depending on your personal financial situation. Having a healthier credit score and lower loan-to-value (LTV) ratios will typically qualify for a larger markdown on their refinance interest rate.

But your personal financial situation isn’t the only factor that impacts your mortgage refinance rate. The equity you have in the property also comes into play. You want to have at least 20% equity, or a loan-to-value ratio of 80% or less.

Even the mortgage itself can determine what your interest rate will be. A shorter-term refinance loan typically has better rates than a loan with longer terms. The type of refinance loan you need makes a difference in the mortgage refinance rate. A cash-out refinance loan usually comes with a higher refinance interest rate than other types of mortgage refinancing.

How Much Does Refinancing Cost?

What you’ll pay to refinance your mortgage can vary widely depending on these factors:

  • Where you live
  • Type of the mortgage
  • What lender you choose
  • Loan amount
  • Your credit score
  • The property’s equity

In general, refinance closing costs are 3% to 6% of the loan balance. Your state and local regulations can influence what fees and taxes you pay. Having more equity in the home and a higher credit score will make it easier to qualify for the refinance loan, secure a lower rate, and to get lenders to compete for your business.

Current Mortgage Rates by Loan Type

Mortgage Refinance Rates

Home Loan Rates


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