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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I am an expert in the field of mortgage finance and refinancing, and I will provide a comprehensive breakdown of the information presented in the article. My knowledge is backed by a deep understanding of market dynamics, interest rate trends, and the intricacies of mortgage products. I will discuss the evidence presented in the article and offer insights into key concepts.

Article Overview:

1. Current Refinance Rates:

  • 30-year fixed refinance: 7.18%

  • 15-year fixed refinance: 6.42%

  • 10-year fixed refinance: 6.26%

  • Evidence: The article provides the average refinance rates for these terms, highlighting a recent increase.

2. Market Conditions:

  • Refinance rates are relatively high, ranging between 6% and 7%.

  • Homeowners are hesitant to refinance due to the high rates, and many are waiting for rates to ease further.

  • Despite a recent increase in refinancing activity, it remains low compared to early 2021.

  • Evidence: Mark Zandi, Chief Economist at Moody’s Analytics, notes that although rates have dipped since November, they are still above the 3.5% average on existing mortgages.

3. Federal Reserve Influence:

  • The Federal Reserve has paused its rate-hike policy and promises interest rate cuts throughout the year.

  • The article suggests that the opportunity to refinance might improve with the Fed's actions.

  • Evidence: The article mentions the Federal Reserve's third consecutive pause and its commitment to interest rate cuts.

4. Future Rate Speculation:

  • The article speculates that if economic data moves in the right direction, 2024 might see lower rates.

  • Experts advise keeping an eye on day-to-day rate changes and having a strategy to capitalize on significant drops.

  • Evidence: Insights from Logan Mohtashami and Matt Graham provide perspectives on when refinancing might make sense.

5. Reasons to Refinance:

  • Homeowners typically refinance to save money, but other reasons include obtaining a lower interest rate, switching mortgage types, eliminating mortgage insurance, changing the loan term, tapping into equity through a cash-out refinance, and making changes in case of divorce.

  • Evidence: The article lists common motivations for refinancing.

6. How to Choose a Refinance:

  • Factors to consider include reducing the interest rate by 1% or more, comparing rates, fees, and annual percentage rate (APR) from different lenders.

  • The article advises caution in the current market conditions and suggests evaluating whether refinancing is the right choice.

  • Evidence: The article provides guidance on factors to consider when choosing to refinance.

7. Shopping for Refinance Rates:

  • Rates advertised online may have specific conditions for eligibility.

  • Personal interest rates are influenced by market conditions, credit history, financial profile, and application.

  • Maintaining a high credit score, low credit utilization ratio, and a history of on-time payments can help secure better rates.

  • Evidence: The article emphasizes the importance of a strong application and advises speaking with multiple lenders.


This comprehensive analysis covers the current state of refinance rates, market conditions, expert insights, and factors to consider when deciding to refinance. As an expert in the field, I recommend homeowners stay informed about market trends and carefully evaluate their financial situation before making decisions related to refinancing.

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


Will mortgage refinance rates go down in 2024? ›

Mortgage rates are expected to decline when the Federal Open Market Committee cuts the benchmark interest rate, which is likely to happen in the second half of 2024. But as long as inflation runs hotter than the Fed would like, rates will remain elevated at their current levels.

Does it ever make sense to refinance 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.

How high are mortgage interest rates expected to go? ›

Mortgage rate predictions for 2024
Housing Authority30-Year Mortgage Rate Forecast (Q2 2024)
National Association of Home Builders6.61%
Wells Fargo6.65%
Fannie Mae6.70%
Average Prediction6.63%
2 more rows

How much should rates drop before refinancing? ›

A rule of thumb says that you'll benefit from refinancing if the new rate is at least 1% lower than the rate you have.

What are mortgage rates expected to be in 2024? ›

Mortgage giant Fannie Mae likewise raised its outlook, now expecting 30-year mortgage rates to be at 6.4 percent by the end of 2024, compared to an earlier forecast of 5.8 percent.

How high will mortgage rates go in 2024? ›

That means the mortgage rates will likely be in the 6% to 7% range for most of the year.” Mortgage Bankers Association (MBA). MBA's baseline forecast is for the 30-year fixed-rate mortgage to end 2024 at 6.1% and reach 5.5% at the end of 2025 as Treasury rates decline and the spread narrows.

Is it a good time to refinance home? ›

The good news is that mortgage rates are expected to fall to near 6% by the end of 2024, which opens the door to those who purchased homes when rates were at their highest, above 8% in 2023. But refinancing isn't just about interest rates.

At what point does it make sense to refinance? ›

An often-quoted rule of thumb says that if mortgage rates are lower than your current rate by 1% or more, it might be a good idea to refinance. But that's traditional thinking, like saying you need a 20% down payment to buy a house.

What is the downside to refinancing your mortgage? ›

Refinancing allows you to lengthen your loan term if you're having trouble making your payments. The downsides are that you'll be paying off your mortgage longer and you'll pay more in interest over time. However, a longer loan term can make your monthly payments more affordable and free up extra cash.

Will interest rates ever go back to 3? ›

The bottom line

Sure, mortgage rates could fall to 3% at some point, but chances are that's not going to happen anytime soon. Moreover, waiting for rates to drop before you buy your home could backfire. Instead, consider buying your house now and refinancing your mortgage when rates improve.

Will mortgage rates go down in March 2024? ›

Mortgage rates are expected to go down sometime in 2024, but the decline probably won't start in March. Instead, mortgage rates are likely to remain about the same because the economy hasn't cooled off enough yet to cause them to fall.

How low will mortgage rates go 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."

How low will interest rates go in 2024? ›

Inflation and Fed hikes have pushed mortgage rates up to a 20-year high. 30-year mortgage rates are currently expected to fall to somewhere between 6.1% and 6.4% in 2024. Instead of waiting for rates to drop, homebuyers should consider buying now and refinancing later to avoid increased competition next year.

What is the average refinance rate today? ›

Today's mortgage and refinance interest rates
ProductInterest RateAPR
10-Year Fixed Rate6.61%6.68%
5-1 ARM6.68%7.92%
10-1 ARM7.03%7.98%
30-Year Fixed Rate FHA7.13%7.18%
5 more rows

Is it worth it to refinance for .5 percent? ›

In general, refinancing for 0.5% only makes sense if you stay in your home long enough to break even on closing costs. Let's say you took out a 30-year fixed-rate mortgage for $200,000 and put down 20%. With a 3.75% mortgage rate, your principal and interest payment amounts to $740 per month.

Will interest rates be cut in 2024? ›

WASHINGTON (AP) — Federal Reserve officials signaled Wednesday that they still expect to cut their key interest rate three times in 2024, fueling a rally on Wall Street, despite signs that inflation remained elevated at the start of the year.

What will interest rates be in 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%.

What is the prime rate forecast for 2024? ›

Historical Data
December 31, 20243.50%
September 30, 20245.75%
June 30, 20245.75%
March 31, 20245.75%
21 more rows


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