Mortgage Refinance Rates Remain Above 7% as Homeowners Consider New Loan Options

WASHINGTON, Sept. 29, 2026 — Mortgage refinance rates remain elevated, with the national average for a 30-year fixed refinance at 7.24% as of Sept. 29, according to Bankrate. The average rate for a 15-year fixed refinance was 6.57%, while the 20-year fixed refinance rate was 6.89%.

Current Refinance Rates

The current national average for a 30-year fixed refinance is 7.24%, with an annual percentage rate, or APR, of 7.32%. The 15-year fixed refinance rate averages 6.57%, with an APR of 6.69%. The 20-year fixed refinance rate averages 6.89%, while the 10-year rate averages 6.31%.

Rates also vary by loan type. The average 30-year FHA refinance rate is 6.96%, while the average 30-year VA refinance rate is 6.99%. The average 30-year jumbo refinance rate is 7.26%. These are national averages, and individual borrowers may receive different rates based on their financial circumstances and loan details.

Factors That Determine Refinance Rates

Lenders consider several factors when setting the rate offered to a borrower. Credit history, credit score, income, debt-to-income ratio, loan amount, property value, and loan type can affect the terms of a refinance.

The rate advertised by a mortgage lender may also differ from the rate ultimately offered to a borrower. Comparing multiple lenders can help homeowners see how different rates, fees, and loan terms affect the total cost of refinancing.

Choosing the Right Loan Term

The loan term affects both the monthly payment and the total interest paid over the life of the mortgage. A 15-year refinance generally carries a lower interest rate than a 30-year refinance, but the shorter repayment period can result in a higher monthly payment. Bankrate's Sept. 29 figures show a 6.57% average for a 15-year fixed refinance compared with 7.24% for a 30-year fixed refinance.

A 30-year refinance spreads repayment over a longer period, which can lower the monthly payment. However, extending the repayment period can increase the total interest paid over the life of the loan. Homeowners should compare both the monthly payment and total borrowing cost when considering different loan terms.

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When Refinancing May Make Financial Sense

Refinancing replaces an existing mortgage with a new mortgage. Homeowners may refinance to obtain a lower interest rate, reduce their monthly payment, shorten the repayment period, or access home equity through a cash-out refinance.

The potential savings should be compared with the costs of obtaining the new mortgage. Closing costs, lender fees, and other expenses can reduce the financial benefit of refinancing. A homeowner with an existing mortgage rate substantially below current refinance rates may not reduce borrowing costs by replacing the loan.

Homeowners considering refinancing can request quotes from several lenders and compare the interest rate, APR, fees, monthly payment, and total repayment cost. With the national average 30-year fixed refinance rate at 7.24%, reviewing the full cost of a new mortgage is important before deciding whether refinancing makes financial sense.