The average 30-year fixed refinancing rate is 6.54%, while a 15-year term is 5.65%. Fannie Mae forecasts rates to be 6.2% in Q1 2026, dropping to 5.9% by year-end. Despite these improvements, rates are still higher than 2020 and 2021, which were above 6%.

Home prices have risen from $246,326 in 2020 to $359,241 in November 2025. More than half of U.S. mortgage holders have rates of 4% or lower, with 80% under 6%. Refinancing at current rates may not be appealing to most homeowners due to potential closing costs and higher monthly payments.

For homeowners seeking equity without refinancing, a home equity loan (HEL) uses your home as collateral, offering lower interest rates than unsecured loans. Home equity lines of credit (HELOCs) function like credit cards, also using home equity as security. Both options have pros and cons to consider.

Reverse mortgages are available to homeowners aged 62+, where the amount you can access is based on equity. However, they are a form of debt with added interest, potentially limiting your ability to downsize or leave equity for heirs. Loaning from family or friends can lead to relationship strains if repayment becomes an issue.

Read more at Yahoo Finance: Mortgage rates projected to drop, but not enough to justify refinancing. How homeowners can tap equity for added cash