Current 30-Year Mortgage Refinance Rates

National Average Mortgage Rates

U.S. News Expert Insights

"Mortgage rates declined this week on the heels of last week's jobs report, which showed a notable slowdown in hiring by U.S. employers in April. The economy added 175,000 jobs, which is much lower than the average of 242,000 for the previous 12 months. On top of that, wage growth slowed and unemployment ticked up slightly.

"Although the job market still remains quite strong, decelerating employment growth could help bring inflation within striking distance of the Federal Reserve's 2% target, giving policymakers the confidence they need to begin cutting interest rates. Fed Chair Jerome Powell made it clear in a news conference following the May rate-setting meeting that the central bank is prepared to hold rates higher for longer, as long as necessary, until inflation is under control.

"Given these developments, the Fed still expects to cut the benchmark rate multiple times later this year, but those cuts might not begin until September. Mortgage rates could remain somewhat elevated until the final quarter of the year, when they're likely to dip closer to around 6.5% for the 30-year term. Meanwhile, mortgage activity has been stifled by higher interest rates, but Americans will continue to move – and buy homes – regardless of mortgage rate trends."

– Erika Giovanetti, U.S. News Loans Expert

How to Compare Fixed Refinance Rates

When comparing 30-year fixed refinance rates, the slightest difference can have a big impact over the life of the loan. "If your goal is to reduce your monthly payments as much as possible, you will want a loan with the lowest interest rate for the longest term," says Shelby McDaniels, national director of business development at Chase Home Lending.

When shopping for a refinance loan, start by getting a few quotes to find the lowest cost to you. But don't only look at the interest rate. The annual percentage rate incorporates any fees into your total cost and is a better way to do an apples-to-apples comparison.

How to Refinance Into a 30-Year Mortgage

The most common refinance loan is a 30-year fixed mortgage refinance. By going this route, you'll pay off your current mortgage and start over with the new home loan, ideally putting yourself in a better financial situation. Refinancing your mortgage is a similar process to purchasing a home:

Pros and Cons of Refinancing

Refinancing may be good for:

Refinancing may not be good for:

Other Considerations Before You Refinance

The first thing to examine is how long you plan to stay in the home, says Erik Katz, president and founder of Rustic Country Real Estate. "The statistic is that people move around every seven years," he says. "You're barely paying down any principal in those first few years and the banks make a killing."

At the very least, you want to be sure you stay long enough to recoup the closing costs. Your loan officer can help you figure out how long that will take.

Next, think about where you are in your current mortgage timeline. "Homeowners may reconsider a refinance if there is limited time left on their existing mortgage term," says McDaniels. If you need to lower your monthly payment, there may be better avenues of relief, such as forbearance or asking for a temporary rate adjustment. 

Do you need to draw cash from your equity? If you're going to pull equity for a second home or some other important expense, a refinance could be a good move for you, says Katz. "But do not treat your house like a credit card," he warns.

30-Year Mortgage Refinance Rates FAQs