Latest Trends in 30-Year Refinance Rates: What You Need to Know
Explore the current shifts in 30-year mortgage refinance rates, understand the factors influencing these changes, and learn how to secure the best deal for your home loan.
Note: No mortgage rate updates were published on Thursday, Nov. 28, due to the Thanksgiving holiday. This report reflects data from Wednesday.
Recent data shows 30-year refinance rates have slightly decreased, settling at an average of 7.01% after a notable drop earlier this week. Rates had previously hit a 19-month low of 6.01% in September but climbed above 7% in October and November before easing back down.
Other refinance loan categories also experienced declines: 15-year and 20-year refinance rates fell by 10 and 4 basis points respectively, while jumbo 30-year rates dipped marginally.
Key Insights
Published average rates differ from promotional teaser rates often advertised online. Teaser rates typically reflect ideal scenarios, such as borrowers with excellent credit scores or smaller loan amounts, and may require upfront points. Your actual rate will depend on personal financial factors including creditworthiness and income.
Given the variability among lenders, it’s essential to compare multiple offers regularly to find the most favorable mortgage refinance terms.
Use our Mortgage Calculator to estimate your monthly payments across various loan options.
What Drives Mortgage Rate Fluctuations?
Mortgage rates are influenced by a mix of macroeconomic and industry-specific factors, including:
- Movements in the bond market, particularly 10-year Treasury yields
- The Federal Reserve's monetary policies, especially regarding bond purchases and mortgage-backed securities
- Competition among lenders and across different loan products
Because these factors often interact simultaneously, pinpointing a single cause for rate changes is challenging.
Throughout 2021, mortgage rates remained relatively low due to the Fed's bond-buying efforts aimed at mitigating pandemic-related economic impacts. However, the Fed began tapering these purchases in late 2021, completing the process by March 2022.
From then through mid-2023, the Fed raised the federal funds rate aggressively to combat inflation, indirectly causing mortgage rates to rise substantially.
After maintaining peak rates for over a year, the Fed initiated rate cuts starting September 2023, with further reductions in November, signaling a potential easing trend into 2024 and beyond.
The next Fed announcement is scheduled for December 18.
How We Monitor Mortgage Rates
The mortgage rate averages presented here are sourced from the Zillow Mortgage API, reflecting loans with an 80% loan-to-value ratio and credit scores between 680 and 739. These figures provide realistic expectations for borrowers, differing from promotional rates that may not represent typical qualifications.
© Zillow, Inc., 2024. Subject to Zillow Terms of Use.
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