Mortgage Rates Today, February 21: 30-Year Refinance Rate Rises by 77 Basis Points

The 30-year fixed refinance rate shot up by a significant 77 basis points today, February 21, 2026, landing at 7.25%, according to Zillow’s latest data. This sudden jump means that getting a new mortgage to replace an existing one just became a lot more expensive for many homeowners.

Mortgage Rates Today, February 21: 30-Year Refinance Rate Rises by 77 Basis Points

Let's break down what happened today, February 21, 2026, according to Zillow. The big story is the 30-year fixed refinance rate. It went from a much more palatable 6.44% yesterday to a hefty 7.25% today. That’s an 81 basis point jump in a single day! If you’re doing the math, that's a huge difference, especially when you're talking about borrowing hundreds of thousands of dollars over three decades.

This isn't just a minor wobble; it’s a serious climb that erases the progress seen over the past week. Compare today’s 7.25% to the average of 6.48% from last week, and you see that 77 basis point increase starkly. It means the cost of borrowing for homeowners looking to refinance has gone up considerably, and quickly.

It wasn't just the 30-year fixed rate that decided to take a hike. Other popular refinance options also saw increases:

• 15-year fixed refinance rate: This jumped from 5.52% to 5.99%, a rise of 47 basis points. While still lower than the 30-year rate, that increase makes it less attractive than it was yesterday.
• 5-year Adjustable-Rate Mortgage (ARM) refinance rate: This one actually held steady at 7.00%. While it didn't go up, it’s still a pretty high rate, and staying stagnant at that level doesn't offer much comfort.

Why the Big Jump? Market Insights You Need to Know

So, what’s behind this sudden surge? When we see rates move this much, this fast, it usually means the lending market is reacting to bigger economic shifts. Think of lenders as super-sensitive thermometers for the economy. They see changes in inflation, bond markets, and the general economic outlook, and they adjust mortgage rates accordingly.

The sharp rise in the 30-year fixed refinance rate to 7.25% tells me lenders are likely feeling pressure from inflation concerns and adjustments in the broader bond market. When Treasury yields, especially those of longer-term bonds, start climbing, mortgage lenders have to raise their rates to make lending profitable and competitive. It’s a domino effect.

• For the 30-Year Fixed: At 7.25%, this rate is hitting levels we haven't seen in a while. For homeowners who were hoping to snag a lower payment, this increase makes it much harder to find significant savings. It really hammers home the idea that timing is everything in the refinance game, and today, the timing wasn't on the borrower's side.
• For the 15-Year Fixed: While 5.99% is still better than many rates we’ve seen in recent years, the gap between this and the 30-year rate has narrowed. This means the decision between a shorter, faster repayment with potentially lower interest overall and a longer, more flexible payment becomes a tougher calculation.
• For the 5-Year ARM: The fact that the 5-year ARM rate stayed at 7.00% while fixed rates soared is interesting. It suggests that the market for ARMs might be a bit more stable or that lenders see them as less of a risk right now. However, at 7.00%, they're still quite expensive and offer less predictability than a fixed rate.

Putting It All Together: The Economic Picture

This isn't happening in a vacuum. The climb in mortgage rates is a symptom of tightening financial conditions. When bond yields go up, it’s usually because investors are demanding higher returns, often due to an expectation of higher inflation or a stronger economy that can handle higher borrowing costs. Lenders, in turn, pass these higher costs onto consumers in the form of higher mortgage rates.

This whole environment is a signal for borrowers to be cautious. Refinancing opportunities that seemed so generous just a few days ago are suddenly less appealing. Remember those multi-year lows we saw earlier in February? It feels like a distant memory now.

What This Means for You: Real-World Implications

I’ve been following the mortgage market for a while, and I can tell you that these kinds of sharp movements can throw a wrench into people’s financial plans. Here’s how today's rate changes might affect different homeowners:

• Homeowners Considering Refinancing: If you were on the fence about refinancing, today’s jump is a big wake-up call. The potential savings you might have seen yesterday are significantly reduced, or even gone. My advice? Don't panic, but definitely keep a close eye on rates. You might need to be more patient or adjust your expectations. Locking in a rate is a big decision, and you want to do it when the market is more favorable.
• Those Focused on Shorter Terms: The 15-year fixed rate at 5.99% is still a good option for those who can afford the higher monthly payments and want to build equity faster. However, the fact that it's closer to the 30-year rate means you need to really weigh the pros and cons carefully. Are you saving enough with the 15-year to justify the increased monthly cost?
• Borrowers Opting for ARMs: While the 5-year ARM rate remaining at 7.00% offers some stability, it’s crucial to remember that this rate will eventually adjust. If you think rates might fall in five years, an ARM could pay off, but if they go up, your payments could skyrocket. Right now, with fixed rates also elevated, the predictability of a fixed-rate mortgage might be more appealing to some, even at a higher initial cost.

Beyond the Headlines: A Deeper Look at Refinance Trends

It's also important to look at the bigger picture of refinancing activity. Even with today's rate hike, refinance applications have been strong. Zillow data suggests that refinances currently make up a significant portion of mortgage applications, around 57.4%, which is up from earlier in February. And the Mortgage Bankers Association (MBA) reported a 7% rise in refinance applications just last week. This shows that despite fluctuations, many homeowners are still trying to take advantage of what they perceive as good opportunities, or perhaps are needing to access home equity.

Looking ahead to 2026, industry experts from TransUnion and the MBA are forecasting growth in refinance originations, but at a slower pace than we saw in 2025. This is logical. As the pool of homeowners with ultra-low rates from years past shrinks, the opportunities for massive savings through refinancing become fewer.

And that's the reality we're living in. While rates have dipped from their absolute highest points, persistent inflation and a strong job market mean that rates probably won't be plummeting below 6.0% for the 30-year fixed anytime soon, especially in this first quarter of 2026. Many homeowners are also getting creative, using Home Equity Lines of Credit (HELOCs) or home equity loans to tap into their home's value without losing their incredibly low primary mortgage rates, a strategy that makes a lot of sense for many.

Key Takeaways: Navigating Today's Mortgage Maze

So, to wrap it up, today, February 21, 2026, was a tough day for anyone looking to refinance their mortgage. The 30-year fixed refinance rate's sharp increase to 7.25% is a stark reminder that the market is dynamic and often unpredictable.

• The 77-basis point jump in the 30-year fixed refinance rate is significant.
• Other refinance options, like the 15-year fixed, also saw increases, though perhaps not as dramatic.
• The 5-year ARM remained steady but at an elevated price point.