Mortgage Refinance Rates on May 13, 2022: Rates Move Up

Several benchmark mortgage refinance rates moved up today. Both 15-year fixed and 30-year fixed refinances saw their mean rates go up. At the same time, average rates for 10-year fixed refinances also moved up.

Though refinance rates do fluctuate slightly on a daily basis, homeowners can expect to see rates rise over the course of this year. In recent months, rates have been trending up from historic lows seen during the pandemic, and are now closer to 2018 rate levels. That means if you're looking to shave dollars and interest off your current monthly mortgage payments, these could be the lowest rates of 2022.

Make sure to think about your goals and circumstances, and compare offers to find a lender who can meet your needs.

30-year fixed-rate refinance

The average rate for a 30-year fixed refinance loan is currently 5.53%, an increase of 13 basis points from what we saw one week ago. (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. Because of this, a 30-year refinance can be a good idea if you're having trouble making your monthly payments. Be aware, though, that interest rates will typically be higher compared to a 15-year or 10-year refinance, and you'll pay off your loan at a slower rate.

15-year fixed-rate refinance

For 15-year fixed refinances, the average rate is currently at 4.83%, an increase of 9 basis points over last week.

With a 15-year fixed refinance, you'll have a larger monthly payment than a 30-year loan. However, you'll also be able to pay off your loan quicker, saving you money over the life of the loan. You'll also typically get lower interest rates compared to a 30-year loan.

This can help you save even more in the long run.

10-year fixed-rate refinance

For 10-year fixed refinances, the average rate is currently at 4.79%, an increase of 12 basis points compared to one week ago. You'll pay more every month with a ten-year fixed refinance compared to a 30-year or 15-year refinance -- but you'll also have a lower interest rate. A 10-year refinance can be a good deal, since paying off your house sooner will help you save on interest in the long run.

But you should confirm that you can afford a higher monthly payment by evaluating your budget and overall financial situation.

Where rates are headed

At the start of the pandemic, refinance rates dropped to historic lows, but now interest rates are hovering around pre-pandemic levels. The Federal Reserve recently raised rates for the second time in 2022, and plans to increase them several more times throughout the year. Given this policy, along with strong economic growth and inflation, which reached its highest in four decades, rates are expected to keep going up this year.

While there have been some temporary dips in interest rates, it's impossible to predict when another drop might occur. That means it's a good idea to try to take advantage of refinancing now and lock in a decent rate. 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

Product Rate Last week Change
30-year fixed refi 5.53% 5.40% +0.13
15-year fixed refi 4.83% 4.74% +0.09
10-year fixed refi 4.79% 4.67% +0.12

Rates as of May 13, 2022.

How to find the best refinance rate

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. Generally, you'll want a high credit score, low credit utilization ratio, and a history of making consistent and on-time payments in order to get the best interest rates.

You can generally 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. You should also take into account any fees and closing costs that might offset the potential savings of a refinance. You should also know that many lenders have had stricter requirements when it comes to approving loans in the past few months.

As such, you may not qualify for a refinance -- or a low rate -- if you don't have a solid credit rating. One way to get the best refinance rates is to strengthen your borrower application. If you haven't already, try to improve your credit by monitoring your credit reports, using credit responsibly, and managing your finances carefully.

Also be sure to compare offers from multiple lenders in order to get the best rate.

When to consider a mortgage 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. Interest rates in the past few months have been at historic lows, but that's not the only thing you should be looking at when deciding whether to refinance. A refinance may not always make financial sense.

Consider your personal goals and financial circumstances. How long do you plan on staying in your home? Are you refinancing to decrease your monthly payment, pay off your house sooner -- or for a combination of reasons?

And don't forget about fees and closing costs, which can add up.

Some lenders have tightened their requirements in recent months, so you may not be able to get a refinance at the posted interest rates -- or even a refinance at all -- if you don't meet their standards.

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.