Overview
- Average rates sit near multi-year lows, with a 30-year purchase at 5.99% and a 30-year refinance at 6.34% as of March 9 per Zillow, and Bankrate’s 30-year average at 6.15% last week.
- Homeowners carrying loans near 7% or higher may realize substantial savings by refinancing at today’s levels.
- A common guideline is to refinance when the new rate is at least one percentage point lower than the current rate, according to Bankrate’s Stephen Kates.
- Refinancing typically carries 2% to 6% in closing costs, so borrowers should calculate a break-even timeline before proceeding.
- Rates remain sensitive to this week’s inflation report and next week’s Federal Reserve meeting, and many lenders offer paid float-down options that allow a lower relock before closing.