30-Year Refinance Rate Holds at 6.42% as Mortgage Costs Stay Elevated Above 6%

3 articles · Updated · Fortune · May 13

Zillow data reviewed on May 13 put the average 30-year fixed refinance rate at 6.42%, offering only limited relief for homeowners considering a refi.
Rates have stayed stubbornly high despite three quarter-point Fed cuts in late 2024, remaining far above the 2% to 3% mortgages many borrowers locked in during the pandemic.
Redfin said 82.8% of mortgage holders had rates below 6% as of the third quarter of 2024, helping explain why many owners remain reluctant to refinance or move.
Refinancing also carries meaningful friction: closing costs typically run 2% to 6% of the loan amount, or about $6,000 to $18,000 on a $300,000 mortgage.
Mortgage rates edged lower in late February but turned up again in March 2026 after the Trump administration's Iran operation fueled higher gas prices and broader economic uncertainty.

With global conflicts now steering mortgage rates, what should homeowners watch for besides the Federal Reserve's next move?

As millions of homeowners feel trapped by low rates, how is this 'lock-in effect' quietly reshaping the entire housing market?

Is the 'buy now, refinance later' strategy still viable when expert rate predictions are so widely divided?