US Mortgage Refinance Rates Drop to 6.83%, MBA Predicts 56% 2024 Volume Increase

Mortgage refinance rates have recently fluctuated between 6.5% and 7%, with the average 30-year fixed refinance rate reported between 6.84% and 6.91% over the past week, while 15-year refinance rates have hovered near 6.1% to 6.27% (Newsweek, CNET). Although rates are expected to trend downward in 2024, they are unlikely to return to the historic lows of 2020 and 2021, when they averaged around 2.96% (Newsweek). The Mortgage Bankers Association forecasts a 56% increase in refinance volume for 2024, and recent data shows modest year-over-year gains in refinance applications despite rates remaining relatively high (Newsweek). Experts advise that refinancing can still make sense for those wishing to change their loan term or type, but most homeowners won't see substantial savings unless rates fall below 6% (CNET). To secure the best deal, borrowers are encouraged to compare offers from at least three lenders and consider both interest rates and annual percentage rates (APR) to account for all associated fees (US News). Key factors influencing rate movement include Federal Reserve policy decisions, inflation trends, and broader economic and political developments (Newsweek, CNET).