Mortgage Resource Center data reviewed July 13 showed refinancing rates remained near 7% across major loan categories, underscoring why many homeowners remain locked into older, cheaper mortgages.
The average U.S. refinance rate for a 30-year, fixed-rate home loan rose to 6.678%, according to Mortgage Resource Center data reviewed by Fortune as of July 13. Other refinance benchmarks were 6.528% for a 20-year conventional loan, 5.773% for a 15-year conventional loan, and 5.656% for a 10-year conventional loan. Jumbo refinance rates stood at 6.698% for 30 years and 6.114% for 15 years, while FHA refinance rates were 5.925% for 30 years and 5.584% for 15 years. VA refinance rates were 6.059% for 30 years and 5.665% for 15 years. Fortune said mortgage refinancing replaces an existing home loan with a new one and typically requires a fresh application, including checks on credit, income, and debt-to-income ratio. The process can cause a small credit-score hit because of a hard inquiry, and borrowers can be denied if they do not meet lender standards. The refinancing backdrop remains difficult for many homeowners. Fortune said some had expected mortgage rates to fall after the Federal Reserve cut the federal funds rate in late 2024, but 30-year fixed mortgage rates stayed close to 7%. Rates moved nearer 6.5% toward the end of February, yet remained well above the 2% to 3% levels seen during the pandemic. As of the third quarter of 2024, 82.8% of mortgaged homeowners had rates below 6%, according to Redfin, helping explain why many have been reluctant to move or refinance. Fortune said mortgage rates began trending lower in late August and early September of 2025 ahead of the Sept. 16-17 Fed meeting, when the central bank delivered a quarter-point reduction in the federal funds rate, followed by equal cuts in October and early December. Rates then rose in March 2026 after the Trump administration launched Operation Epic Fury in Iran at the end of February, alongside higher gas prices and broader economic uncertainty. They briefly appeared poised to fall after a U.S.-Iran ceasefire announced in June 2026, but remained elevated and ticked up slightly again after the ceasefire seemed to unravel in July 2026. Fortune said refinancing may make sense when borrowers can secure a meaningfully lower rate, tap home equity through a cash-out refinance, change loan terms, or switch loan types, such as moving from an FHA loan to a conventional loan to eliminate lifetime mortgage insurance. It said refinancing usually carries closing costs of 2% to 6% of the loan amount, or about $6,000 to $18,000 on a $300,000 loan.