Latest refinance mortgage rate update for Oct. 27, 2026

The average refinance rate for a 30-year fixed home loan is 7.292%, according to Mortgage Resource Center data. If you’re a homeowner looking to refinance for a lower rate or to access home equity, the figures below show average refi rates across several loan types and terms.

Refinance rates snapshot

Conventional mortgages

Jumbo mortgages

FHA loans

VA loans

Fortune reviewed the latest Mortgage Resource Center data available at the time of publication.

How mortgage refinancing works

Refinancing a mortgage means replacing your current home loan with a new one. As with an original mortgage application, borrowers must apply and satisfy lender requirements, which typically include a credit check, income verification, debt-to-income ratio review, and other criteria.

The process usually triggers a small dip in your credit score because of the hard inquiry, and approval is not guaranteed if you do not meet the lender’s standards.

What is going on with mortgage rates right now?

Some market watchers expected mortgage rates to fall after the Federal Reserve cut the federal funds rate in late 2024. Instead, 30-year fixed mortgage rates have stayed stubbornly near 7% nationwide.

Rates eased modestly toward the end of February and moved closer to 6.5%, but they remain far above the pandemic-era lows of roughly 2% to 3%. By the third quarter of 2024, 82.8% of homeowners with mortgages had rates below 6%, according to a Redfin report. That has left many homeowners effectively locked in and unable or unwilling to move or refinance at today’s higher levels.

Some relief arrived in late August and early September of 2025, when mortgage rates began trending lower ahead of the September Fed meeting. They fell to a level not seen in nearly a year, and the Fed then delivered a quarter-point cut to the federal funds rate. The central bank followed with another quarter-point reduction at its October meeting and a third cut of the same size in early December.

Rates rose again 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. Mortgage rates briefly appeared poised to ease after the U.S. and Iran announced a ceasefire in June 2026, but they have generally remained elevated. They edged higher again after the ceasefire seemed to unravel in July 2026.

With inflation still persistent and the economic outlook uncertain, the Fed raised its benchmark rate at its September 2026 meeting, making near-term relief for homebuyers and refinance applicants look unlikely.

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When refinancing may make sense

Refinancing is not free, so it is important to compare the costs before moving forward.

A common rule of thumb is that refinancing becomes worthwhile if you can lock in a rate that is at least one percentage point lower than your current one. For example, if your mortgage rate is 7%, refinancing to 6% could reduce the interest you pay over the life of the loan.

You may also consider a cash-out refinance to draw on home equity, which usually requires at least 20% equity in the property. In general, there are few restrictions on how the cash can be used, so borrowers may invest it, put it toward a vacation home or rental property down payment, or use it to pay off credit card debt.

Refinancing can also help you change the length of your loan. Someone with a 15-year mortgage who needs a lower monthly payment may choose to switch to a 30-year term.

It can also be a way to move between loan types, such as refinancing from an FHA loan to a conventional mortgage to eliminate the FHA loan’s lifetime mortgage insurance premium requirement, or from an adjustable-rate mortgage to a fixed-rate loan.

What it costs to refinance

Refinancing comes with closing costs, typically equal to 2% to 6% of the loan amount. On a $300,000 loan, that would mean roughly $6,000 to $18,000. Common expenses may include:

• Lender origination fees
• Appraisal fees
• Title search and insurance fees
• Loan application fees
• Survey fees
• Attorney fees, where required by state law
• Recording fees
• Prepayment penalties, if your current loan includes them

Common types of refinance loans

There are several kinds of mortgage refinance loans, and the best fit depends on your goals and the loan you already have. Common options include:

• Rate-and-term refinance: This is the most common type of refinance. It allows you to lower your interest rate and/or adjust your loan term. A shorter term often brings a lower rate and major lifetime interest savings, but it also means a higher monthly payment.
• Cash-out refinance: This option replaces your current mortgage with a larger loan and gives you the difference in cash. The money can be used for home improvements, debt consolidation, or other financial goals.
• No-closing-cost refinance: Here, the lender covers the closing costs in exchange for a higher interest rate. This may be worth considering if you do not have cash available for upfront costs but still want to refinance.
• Streamline refinance: Designed for borrowers with existing FHA, VA, and USDA loans, these refinances generally require less paperwork and offer a simpler application and approval process.

Refinancing with your current lender or a new one

You are not required to refinance with the lender that holds your current mortgage, and comparing offers can help you find the best available rate and service.

That said, your current lender may offer incentives such as reduced closing costs if you stay with them, so it is worth discussing the option.

If your mortgage has been sold to Fannie Mae or Freddie Mac, you may also qualify for programs such as Refi Now and Refi Possible.