Mortgage refinance rates are moving higher again as of May 5, 2026, with the 30-year fixed rate climbing to 6.5%, signaling a continued upward trend in borrowing costs. This marks another week of increases, pushing homeowners to reassess whether refinancing still makes financial sense. Borrowing Costs Push Higher Across Key Loan Terms The rise in refinance rates is not limited to one category. The 30-year fixed refinance rate increased by 0.12 percentage points compared to last week. At this level, borrowers with a $100,000 loan now face monthly payments of about $632 in principal and interest. Over the full loan term, that translates to roughly $128,303 in total interest. Source: Forbes Short-term loans are also trending upward. The 15-year refinance rate now stands at 5.57%, climbing from 5.45% a week ago. That shift pushes monthly payments to around $821 per $100,000 borrowed. While the monthly cost is higher, total interest remains significantly lower at approximately $48,185 over the life of the loan. Meanwhile, the 20-year refinance option is gaining attention. Rates rose to 6.4%, up from 6.24% last week. Borrowers choosing this middle-ground option would pay about $740 monthly per $100,000, with total interest nearing $78,077. So, what does this mean for homeowners deciding between loan terms? It highlights a clear trade-off between monthly affordability and long-term savings. Jumbo Loans Follow The Same Trend Jumbo refinance loans are also becoming more expensive. The 30-year jumbo refinance rate increased to 6.75%, up from 6.63% last week. At this level, borrowers pay roughly $649 per month per $100,000 borrowed. Similarly, the 15-year jumbo refinance rate climbed to 6.07%. Monthly payments now reach about $848 per $100,000, with total interest costs estimated at $52,849. These increases show that higher-value loans are not insulated from broader rate pressures. Why Are Refinance Rates Rising Now? The upward movement in refinance rates reflects broader stability in benchmark interest rates. Lenders continue adjusting pricing based on economic signals, including inflation expectations and monetary policy decisions. Refinance rates also tend to sit slightly above standard mortgage rates. Why? Because refinancing carries different risk factors, especially when homeowners tap into equity. Cash-out refinancing, in particular, often comes with even higher rates due to increased lender exposure. Government-backed refinance options, such as FHA and VA loans, may still offer slightly lower rates. However, borrowers must evaluate the annual percentage rate (APR), which includes fees and provides a clearer picture of total borrowing costs. Should Homeowners Still Consider Refinancing? With rates climbing, many homeowners are asking whether refinancing still makes sense. The answer depends on individual circumstances. Borrowers need to compare their current mortgage rate, remaining balance, and loan term against new offers. If the new rate does not deliver meaningful monthly savings or long-term cost reduction, refinancing may not be beneficial right now. On the other hand, those looking to change loan terms or access equity may still find value despite higher rates. Ultimately, the latest increase in refinance rates signals a more cautious environment for borrowers. As rates continue to shift, homeowners must stay informed and evaluate their options carefully before making a move.
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