Mortgage Refinance Rates November 15, 2023: Rates are low

The big question for housing market experts is whether we are finally on the path to lower mortgage rates. Recently, mortgage rates have seen some moderate recovery, driven by a combination of weaker labor data, a lower 10-year Treasury yield and positive messaging from the Federal Reserve about its battle against inflation.

Both 15-year fixed refinances and 30-year fixed refinances saw their average interest rates decline this week. Average interest rates on 10-year fixed refinances have also decreased.

The decline in mortgage rates this month brought some buyers out of the woodwork. Mortgage applications rose 2.5% for the week ending Nov. 3, according to the Mortgage Bankers Association. However, many homeowners are not willing to sell or refinance their homes because they will be dealing with the same issues that potential buyers face today: high mortgage rates, limited available inventory, and expensive homes.

About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool displays rates from lender partners that you can use when comparing multiple mortgage rates.

“Many homeowners are constrained by very low mortgage rates, which provides a strong disincentive to move,” said Matthew Walsh, a housing economist at Moody’s Analytics. Last month, refinance applications fell 92.3% compared to the peak of the 2020 refinancing boom, according to the housing authority Fannie Mae.

If you bought a home more than a year ago and your main goal was to save money, you probably won’t be able to secure a cheaper mortgage rate by refinancing right now. But refinancing may make sense for other reasons, including changing your mortgage type or removing someone from your mortgage.

Refinancing rates for homeowners

If you decide to refinance, be sure to compare rates, fees, and the annual percentage rate, which reflects the total cost of borrowing, from different lenders to find the best deal.

We track refinance rate trends using data collected by Bankrate. Below is a table of average refinance rates reported by lenders across the United States:

Average refinancing interest rates

project an average Since a week It changes
Fixed renewal for 30 years 7.92% 7.96% -0.04
Fixed renewal for 15 years 7.14% 7.39% -0.25
Fixed renewal for 10 years 7.17% 7.18% -0.01

Prices as of November 15, 2023.

What is influencing the trend of refinancing rates right now?

“Affordability, specifically how a shortage of available homes for sale has pushed home prices up despite rising interest rates and falling demand, is the story of the year,” according to Black Knight’s monthly mortgage data report.

Mortgage rates move up and down on a daily basis in response to a variety of factors, including inflation, monetary policy, and the future outlook for the broader economy.

After several successive interest rate increases throughout 2022 and 2023 to slow inflation, which helped push mortgage rates to record levels, the Fed entered a holding mode to assess the effects on price growth and the labor market.

Low inflation and a cooler labor market could stabilize prices, according to Udeta Koshy, deputy chief economist at First American Financial. But she said it was unlikely there would be significant reductions in home loan interest rates or immediate improvements until there was further progress and a sustained decline in economic activity.

Koshy said it is very difficult to predict the exact movement of mortgage rates because they are tied to the broader economy and global geopolitical events.

Logan Mohtashami, senior analyst at HousingWire, says that as long as inflation continues to slow, the Fed will eventually be able to cut interest rates in 2024. Although the Fed does not set mortgage interest rates, its actions have an impact Multiplier on the economy. .

Fannie Mae expects the average 30-year fixed mortgage rate to reach 7.3% at the end of the year. Mortgage rates could fall to the 6% range in the middle of next year.

How to Shop for Refinancing Rates

Prices advertised online often require specific eligibility requirements. Your personal interest rate will be affected by market conditions as well as your specific credit history, financial profile, and application. Having a high credit score, 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 refinancing 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 talk to several lenders and shop around.

Refinancing can be a great move if you get a good rate or are able to pay off your loan sooner, but consider whether this is the right option for you right now.

30-year fixed rate refinance

The average 30-year fixed refinance rate is now 7.92%, down 4 basis points from one week ago. (A basis point equals 0.01%.) A 30-year fixed refinance typically has lower monthly payments than a 15-year or 10-year refinance, so it can be a good option if you’re having trouble making your monthly payments. However, a 30-year refinance loan will take longer to pay off and will typically cost you more in interest in the long run.

15-year fixed rate refinance

The current average interest rate for a 15-year refinance is 7.14%, down 25 basis points from last week. Although refinancing to a 15-year fixed term will likely increase your monthly payment compared to a 30-year loan, you will save more money over time because you pay off your loan faster. Also, 15-year refinancing rates are usually lower than 30-year refinancing rates, which will help you save more in the long run.

10-year fixed rate refinance

The average 10-year fixed refinance loan rate is currently 7.17%, down 1 basis point from what we saw the previous week. A 10-year refinance usually has the lowest interest rate but the highest monthly payment of all refinancing terms. Refinancing to 10 years can help you pay off your home faster and save on interest, but make sure you can afford the higher monthly payment.

When to consider refinancing your mortgage

In general, it’s a good idea to refinance if you can get a lower interest rate than your current interest rate, or if you need to change the term of your loan. When deciding whether to refinance, consider other factors, including how long you plan to stay in your current home, the term of your loan, and your monthly payment amount. And don’t forget to factor in fees and closing costs, which can add up.

As mortgage refinancing rates rise to current highs, the number of refinancing applicants has shrunk. If you bought your home when interest rates were lower than they are today, there won’t be much financial benefit to refinancing your mortgage. However, homeowners cannot time the market. No matter which way rates are headed, decide if refinancing makes sense based on your financial situation and goals.

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