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.

Recommended Articles

Compare Current Refinance Rates in January 2024

Compare Current Refinance Rates in January 2024

By David McMillin

Refinancing a Mortgage: How It Works

Refinancing a Mortgage: How It Works

By David McMillin

30-Year Refinance Rates for January 2024

30-Year Refinance Rates for January 2024

By Alix Langone

15-Year Mortgage Refinance Rates for January 2024

15-Year Mortgage Refinance Rates for January 2024

By Alix Langone

How to Refinance Your Home

How to Refinance Your Home

By Dori Zinn

How Does a Cash-Out Refinance Work?

How Does a Cash-Out Refinance Work?

By Amanda Push

VA Refinance Rates for January 2024

VA Refinance Rates for January 2024

By Alix Langone

As an expert in the field of mortgage finance and refinancing, I bring a wealth of knowledge and experience to shed light on the information provided in the article. I have a deep understanding of the mortgage market, interest rate trends, and the factors influencing refinancing decisions.

Firstly, let's analyze the reported average refinance rates mentioned in the article:

  1. 30-year Fixed Refinance: 7.18%
  2. 15-year Fixed Refinance: 6.42%
  3. 10-year Fixed Refinance: 6.26%

These rates are higher compared to the historical average of 3.5% on existing mortgages, as noted by Mark Zandi, Chief Economist at Moody’s Analytics. Despite a slight dip in rates since November, they remain relatively high. The article mentions that homeowners are holding onto their original mortgages, anticipating further rate decreases.

The article provides a snapshot of the current rates as of January 24, 2024, highlighting the recent increases in rates over the past week. The details emphasize the importance of considering individual credit history, financial profiles, and applications when determining the actual interest rates for refinancing.

The piece discusses the Federal Reserve's pause in its aggressive rate-hike policy, potentially paving the way for a more favorable environment for refinancing. The information stresses the significance of monitoring day-to-day rate changes and having a strategic plan to capitalize on substantial rate drops.

Moving on to the considerations for choosing a refinance:

  1. 30-year Fixed-rate Refinance:

    • Average Rate: 7.18%
    • Lower monthly payments but longer pay-off duration and higher overall interest costs.
  2. 15-year Fixed-rate Refinance:

    • Average Rate: 6.42%
    • Higher monthly payments but shorter pay-off duration, leading to more significant long-term savings.
  3. 10-year Fixed-rate Refinance:

    • Average Rate: 6.26%
    • Lowest interest rate but the highest monthly payment; suitable for those aiming to pay off their mortgage quickly.

The article also outlines reasons homeowners might consider refinancing, including securing a lower interest rate, switching mortgage types, eliminating mortgage insurance, adjusting the loan term, accessing equity through a cash-out refinance, or dealing with changes in ownership, such as divorce.

Moreover, it advises on how to shop for refinance rates, emphasizing the need to strengthen one's application by maintaining a high credit score, low credit utilization ratio, and a history of on-time payments. It encourages consumers to speak with multiple lenders and compare rates, fees, and annual percentage rates to secure the best deal.

In conclusion, my expertise in mortgage finance reinforces the information presented in the article, providing a comprehensive understanding of the current state of refinance rates, factors influencing decisions, and recommendations for homeowners considering refinancing in the current market conditions.

Mortgage Refinance Rates on Jan. 24, 2024: Rates Move Up (2024)
Top Articles
Latest Posts
Article information

Author: Mrs. Angelic Larkin

Last Updated:

Views: 6421

Rating: 4.7 / 5 (67 voted)

Reviews: 82% of readers found this page helpful

Author information

Name: Mrs. Angelic Larkin

Birthday: 1992-06-28

Address: Apt. 413 8275 Mueller Overpass, South Magnolia, IA 99527-6023

Phone: +6824704719725

Job: District Real-Estate Facilitator

Hobby: Letterboxing, Vacation, Poi, Homebrewing, Mountain biking, Slacklining, Cabaret

Introduction: My name is Mrs. Angelic Larkin, I am a cute, charming, funny, determined, inexpensive, joyous, cheerful person who loves writing and wants to share my knowledge and understanding with you.