Zillow Puts Average 30-Year Fixed Refi Rate at 6.50% as Mortgage Costs Stay Elevated
Updated
Updated · Fortune · Jun 29
Zillow Puts Average 30-Year Fixed Refi Rate at 6.50% as Mortgage Costs Stay Elevated
3 articles · Updated · Fortune · Jun 29
Summary
Zillow’s latest data, reviewed as of June 26, showed the average 30-year fixed refinance mortgage rate at 6.50%, keeping borrowing costs high for homeowners considering a refi.
6.50% still sits well above the 2% to 3% pandemic-era lows, and mortgage rates have largely resisted falling in step with the Federal Reserve’s late-2024 rate cuts.
82.8% of mortgaged homeowners had rates below 6% as of the third quarter of 2024, according to Redfin, leaving many borrowers locked in and reluctant to refinance or move.
2% to 6% in closing costs can blunt the case for refinancing; on a $300,000 loan, that works out to roughly $6,000 to $18,000 upfront.
A refinance generally makes the most sense when borrowers can cut their rate by about 1 percentage point, tap at least 20% home equity, or change loan term or type.