Current Refinance Rates on Nov. 23, 2022: Rate Drops

Refinance rates were mixed this last week, but one key rate slid lower. The Fed's interest rate hikes have affected the refinance market.

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The average rate for a 15-year fixed-rate refinance advanced over the last seven days, while 30-year fixed refinance rates decreased. The average rate on 10-year fixed refinance didn't fluctuate.

Like mortgage rates, refinance rates fluctuate on a daily basis. With inflation at a 40-year high, the Federal Reserve has hiked the federal funds rate six times in 2022. Though mortgage rates are not set by the central bank, its rate hikes increase the cost of borrowing money and eventually impact mortgage and refinance rates and the broader housing market. Whether refinance rates will continue to rise or fall will depend largely on how things play out with inflation. If inflation cools, rates will likely follow suit. But if inflation remains high, we could see refinance rates maintain their upward trajectory.

If rates for a refi are currently lower than your existing mortgage rate, you could save money by locking in a rate now. As always, consider your goals and circumstances, and compare rates and fees to find a mortgage lender who can meet your needs.

30-year fixed-rate refinance

The average rate for a 30-year fixed refinance loan is currently 6.88%, a decrease of 3 basis points over this time last week. (A basis point is equivalent to 0.01%.) One reason to refinance to a 30-year fixed loan from a shorter loan term is to lower your monthly payment. If you're having difficulties making your monthly payments currently, a 30-year refinance could be a good option for you. Be aware, though, that interest rates will typically be higher compared to a 10- or 15-year refinance, and you'll pay off your loan at a slower rate.

15-year fixed-rate refinance

The average 15-year fixed refinance rate right now is 6.23%, an increase of 5 basis points over last week. A 15-year fixed refinance will most likely raise your monthly payment compared to a 30-year loan. On the other hand, you'll save money on interest, since you'll pay off the loan sooner. Interest rates for a 15-year refinance also tend to be lower than that of a 30-year refinance, so you'll save even more in the long run.

10-year fixed-rate refinance

The current average interest rate for a 10-year refinance is 6.34%, unmoved over last week. Compared to a 15- or 30-year refinance, a 10-year refinance will usually have a lower interest rate but higher monthly payment. A 10-year refinance can help you pay off your house much quicker and save on interest. However, you should analyze your budget and current financial situation to make sure you'll be able to afford the higher monthly payment.

Where rates are headed

At the start of the pandemic, refinance rates dropped to historic lows, but they have been steadily climbing since the beginning of 2022. The Fed recently raised interest rates by another 0.75 percentage points and is poised to raise rates again to slow the economy. Though it's unclear exactly what will happen next, if inflation continues to rise, rates are likely to climb. If inflation eases, rates could level off and begin to decline.

We track refinance rate trends using data collected by Bankrate, which is owned by CNET's parent company. Here's a table with the average refinance rates provided by lenders across the country:

Average refinance interest rates

ProductRateLast weekChange
30-year fixed refi6.88%6.91%-0.03
15-year fixed refi6.23%6.18%+0.05
10-year fixed refi6.34%6.34%N/C

Rates as of Nov. 23, 2022.

How to shop for refinance rates

It's important to understand that the rates advertised online may not apply to you. Your interest rate will be influenced by market conditions as well as your credit history 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. You can get a good feel for average interest rates online, but make sure to speak with a mortgage professional in order to see the specific rates you qualify for. To get the best refinance rates, you'll first want to make your application as strong as possible. The best way to improve your credit ratings is to get your finances in order, use credit responsibly and monitor your credit regularly. 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 carefully whether it's the right choice for you at the moment.

Is now a good time to refinance?

Generally, it's a good idea to refinance if you can get a lower interest rate than that your current interest rate, or if you need to change your loan term. When deciding whether to refinance, be sure to take into account other factors besides market interest rates, including how long you plan to stay in your current home, the length of your loan term and the amount of your monthly payment. And don't forget about fees and closing costs, which can add up.

As interest rates have steadily increased since the beginning of the year, the pool of refinancing applicants has shrunk significantly. If you bought your house when interest rates were lower than current rates, you may likely not gain any financial benefit from refinancing your mortgage.