Mortgage Rates Today, Nov 26: 30-Year Refinance Rate Drops But ARMs Climb

Mortgage rates today, Nov 26, show a promising dip for those considering a 30-year refinance, with the average rate dropping by 6 basis points. This change brings the national average for a 30-year fixed refinance to 6.72%, a move that could make a real difference for many homeowners looking to save on their monthly payments. Based on the latest data from Zillow, this recent adjustment is a welcome piece of news, especially when we consider the broader economic forces at play.

Mortgage Rates Today, Nov 26: 30-Year Refinance Rate Drops But ARMs Climb

Decoding the Day's Mortgage Rate Movements

Let's break down what's happening with refinance rates today, November 26, 2025. The market is a dynamic place, and different loan types are reacting in their own ways. Understanding these nuances is key to making an informed decision about your mortgage.

1. The 30-Year Fixed Refinance Rate: A Welcome Dip

Today's headline stat is the decrease in the 30-year fixed refinance rate. According to Zillow, this rate has moved from 6.66% to 6.72%. While it might seem like a small adjustment, a 6 basis point drop today, when compared to last week's average of 6.78%, paints a picture of a broader trend downwards. This signifies that, despite any minor daily fluctuations, the cost of refinancing a 30-year mortgage is becoming more favorable.

For many homeowners, the 30-year fixed-rate mortgage is the go-to option. Its popularity stems from the predictable monthly payments and the long repayment period, which makes managing household budgets easier. A 6 basis point reduction might translate into saving tens or even hundreds of dollars over the life of the loan, depending on the loan amount. It suggests that now could be a good time to explore refinancing if you've been on the fence.

2. The 15-Year Fixed Refinance Rate: A Steady Decline

The news isn't just for longer-term borrowers. The 15-year fixed refinance rate has also seen a slight decrease, moving from 5.68% to 5.65%. This is a reduction of 3 basis points. While smaller than the move in the 30-year rate, it’s another positive sign for borrowers.

Shorter-term loans like the 15-year mortgage typically come with lower interest rates than their 30-year counterparts. This is because lenders perceive less risk over a shorter period. Borrowers who opt for a 15-year term usually do so because they want to pay off their mortgage faster and build equity more quickly. The lower rate on top of the shorter term can lead to significant savings in interest paid over time. If your goal is aggressive debt reduction, watching the 15-year rate is just as important.

3. The 5-Year ARM Rate: A Sharp Increase

Not all refinance rates are moving in the same direction, though. The 5-year Adjustable-Rate Mortgage (ARM) refinance rate has experienced a noticeable surge, climbing 22 basis points from 7.31% to 7.53%. This is a substantial jump and highlights the inherent risks associated with ARMs, especially in a fluctuating economic environment.

ARMs start with a fixed interest rate for an initial period (in this case, five years), after which the rate adjusts periodically based on market conditions. While they can offer a lower initial rate compared to fixed-rate mortgages, the potential for significant increases later can be a major concern. This recent spike in the 5-year ARM rate serves as a strong reminder for borrowers to carefully consider their risk tolerance and future financial stability before committing to this type of loan. In times of economic uncertainty, fixed-rate mortgages often provide a more secure path.

What This Means for You

These mixed movements across different loan types—a slight drop in the 30-year, a small decrease in the 15-year, and a significant rise in the 5-year ARM—reflect the complex reality of today's financial markets. Several factors influence these rates, including inflation expectations, the Federal Reserve's monetary policy, and the overall health of the economy.

For Homeowners Considering Refinancing:

We're seeing a trend that could benefit homeowners looking for stability and long-term savings. The decrease in the 30-year rate, in particular, makes it an attractive option for those who want to lower their monthly payments without drastically changing their repayment timeline.

• Evaluate Your Current Mortgage: How does your current rate compare to these new refinance rates? Even a small improvement can add up.
• Consider Your Financial Goals: Are you focused on reducing monthly payments, paying off your home faster, or taking cash out? Your goals will dictate which type of loan is best for you.
• Assess Your Risk Tolerance: If you're thinking about an ARM, understand the potential for future rate increases. The current rise in the 5-year ARM rate is a clear indicator of this risk.
• Shop Around: It’s always wise to get quotes from multiple lenders to ensure you’re securing the best possible rate and terms. Each lender might have slightly different pricing.

My Two Cents:

From my perspective, the current environment is one where caution and strategic thinking are rewarded. The downward movement in the 30-year fixed refinance rate is a positive signal, suggesting that opportunities to lock in lower borrowing costs are present. However, the sharp uptick in ARM rates underscores the importance of prioritizing stability if your financial future is less certain or if you prefer predictable expenses.

I always advise people to look beyond just the advertised rate. Consider the closing costs, any fees associated with the refinance, and how long you plan to stay in the home. These elements can significantly affect the true cost of refinancing and whether it makes financial sense for your specific situation. The numbers from Zillow provide a valuable snapshot, but personalized analysis is crucial.

It's essential to remember that these are national averages. Actual rates offered to you will depend on your credit score, loan-to-value ratio, the type of loan you choose, and the specific lender.

As of November 26, 2025, the mortgage market presents a mixed bag of opportunities and warnings. The 6 basis point drop in the 30-year fixed refinance rate is encouraging for many homeowners looking to trim their monthly obligations or secure a lower overall interest cost. Meanwhile, the 15-year fixed rate's modest decrease offers good news for those aiming for quicker equity building.

However, the significant rise in the 5-year ARM rate serves as a stark reminder of the volatility inherent in adjustable loans, urging a more conservative approach for many. Navigating these changes requires careful consideration of personal financial goals and risk appetite.