Refinance closing costs increase but remain below inflation rate

“While refinance closing costs increased marginally, annual increases in fees still remain below the 7% average rate of inflation seen in 2021,” Jennings said. “Much of the cost control can be attributed to the growing use of technology solutions by both lenders and settlement services providers, which enabled the industry to scale up capacity while holding the line on closing costs.”

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The highest average closing costs (without specialty taxes) were Hawaii ($4,730), New York ($4,679), Florida ($3,956), Texas ($3,588) and District of Columbia ($3,370). Including taxes, New York ($10,084), Pennsylvania ($7,614), Delaware ($7,223), Florida ($5,821) and California ($5,762) posted the highest closing costs.