Mortgage Rates Today: 30-Year Fixed Refinance Rate Rises by 8 Basis Points

If you've been thinking about refinancing your mortgage, you're probably keeping a close eye on the numbers. Today, the news isn't exactly what many homeowners hoped for: national 30-year fixed refinance rates have ticked up to 6.87%, an increase of 8 basis points from yesterday's 6.79%. This change, while seemingly small, has a real impact on your wallet and how you should approach your refinancing plans. This uptick serves as a clear message: if you're looking to lower your monthly payments or tap into home equity, acting sooner rather than later might be the smartest move.

Mortgage Rates Today: 30-Year Fixed Refinance Rate Rises by 8 Basis Points

Breaking Down the 8 Basis Point Jump

An “8 basis point” increase might sound like jargon, but let's translate it. In the finance world, a basis point is just one-hundredth of a percentage point. So, an 8-basis-point rise means the average rate went up by 0.08%. On Wednesday, October 29, 2025, Zillow reported that this change pushed the national average 30-year fixed refinance rate from 6.79% to 6.87%. To put it another way, this is a 5 basis point rise from the previous week's average of 6.82%.

What Does This Mean for Your Monthly Payments?

This might be the question on many homeowners' minds. Let's look at a hypothetical example. If you were to refinance a $300,000 loan at 6.79% for 30 years, your principal and interest payment would be around $1,946 per month. Now, if that same loan is refinanced at 6.87%, your monthly payment nudges up to about $1,961. That's an extra $15 each month. While it might not seem like a huge sum on its own, over the 30-year life of the loan, this adds up to an extra $5,400. It’s a gentle reminder that even small rate increases can have a cumulative effect.

Here's a quick look at other refinance rates, according to Zillow:

• 15-Year Fixed Refinance Rate: Climbed 15 basis points from 5.68% to 5.83%.
• 5-Year Adjustable-Rate Mortgage (ARM) Refinance Rate: Holding steady at 7.42%.

Refinance Timing: Locking in Rates Before Further Hikes

The current increase is happening in a crucial week for financial markets. The Federal Reserve's Federal Open Market Committee (FOMC) meeting, which began yesterday, October 28, 2025, concludes today, October 29, 2025. The big announcement comes at 2 p.m. EDT, with Fed Chair Jerome Powell holding a press conference shortly after.

Why is this so important? Well, the Fed's decisions on interest rates, particularly its benchmark rates, have a ripple effect throughout the economy, influencing mortgage rates. Markets are widely anticipating a 25-basis-point rate cut from the Fed today, which would lower the target range to 3.75%–4%.

While a rate cut is generally seen as a positive sign for borrowers, the immediate reaction in mortgage rates can be complex and sometimes counterintuitive. Lenders are always looking ahead, anticipating future trends. Seeing rates climb before the Fed announcement suggests that, for now, lenders might be pricing in existing economic factors or anticipating that any rate cut might not be enough to significantly lower mortgage rates in the short term, or perhaps anticipating other factors that could keep rates elevated.

From my perspective, this situation underscores the importance of being proactive. If your goal with refinancing is to secure a lower interest rate, waiting too long could mean missing out on potentially better opportunities, even if the Fed signals a cut. Markets are already “pricing in” expectations, and sometimes the reality on the ground shifts quickly.

Comparing 30-Year Fixed vs. 15-Year Refinance Options

The choice between a 30-year and a 15-year mortgage is a classic one, and it’s worth revisiting with these rate movements in mind.

• 30-Year Fixed: Offers lower monthly payments, making it more manageable for many households. However, you’ll pay more interest over the life of the loan.
• 15-Year Fixed: Comes with higher monthly payments but a significantly lower interest rate and you'll pay off your home much faster, saving a substantial amount on interest. As mentioned, the 15-year rate has also seen an increase, climbing to 5.83%.

Let's compare:

Loan Term	Current Rate (Approx.)	Monthly Payment (on $300k loan)	Total Interest Paid (Approx.)
30-Year Fixed	6.87%	$1,961	$405,960
15-Year Fixed	5.83%	$2,318	$175,320

As you can see, the payment difference is about $357 per month, but the savings on interest over the life of the loan are immense – over $230,000! If your budget can handle the higher monthly payment, a 15-year refinance could be a powerful tool for building equity and saving money long-term.

How Credit Score Impacts Your Refinance Rate Today

It’s critical to remember that the “national average” rates are just that – averages. Your personal refinance rate will be heavily influenced by your credit score. Lenders use your credit score to gauge your reliability as a borrower. The higher your score, the lower the interest rate you're likely to qualify for.

• Excellent Credit (740+): You'll generally be offered rates close to the advertised averages, or even better.
• Good Credit (670-739): You can still get competitive rates, but they might be slightly higher than the top-tier offerings.
• Fair Credit (580-669): You may face higher rates or lenders might be more hesitant to approve your refinance.
• Poor Credit (below 580): Refinancing can be very challenging, often requiring significant credit improvement.

If your credit score has improved since you last took out your mortgage, this could be an excellent time to explore refinancing, potentially offsetting some of today's rate increases.

The Role of Debt-to-Income Ratio in Refinancing

Beyond your credit score, your debt-to-income ratio (DTI) is another crucial factor. This ratio compares your total monthly debt payments (including your potential new mortgage payment) to your gross monthly income. Lenders want to see that you can comfortably manage your existing debts and a new mortgage. A lower DTI generally means you're in a stronger financial position and more likely to be approved for a refinance at a good rate.

Generally, lenders prefer a DTI of 43% or lower, though some might go up to 50% depending on other factors. If you've been diligently paying down other debts, your DTI might have improved, making you a more attractive borrower.

Impact of Inflation on Mortgage Rates

Inflation is arguably one of the most significant drivers of mortgage rates. When inflation is high, the purchasing power of money decreases. To combat this, central banks, like the Federal Reserve, often raise interest rates. Higher interest rates make borrowing more expensive, which can help to cool down an overheated economy and bring inflation under control.

The current inflation environment, even as it shows signs of moderating, is a key reason why mortgage rates have remained elevated. Lenders price this risk into their offerings, and until inflation is consistently under control, we'll likely continue to see rates sensitive to any economic news. Today's slight increase in refinance rates could be a reflection of ongoing concerns about inflation or other economic indicators that suggest borrowing costs may need to stay at these levels for a while longer.

Key Event Today: Federal Reserve Policy Meeting

As I mentioned, the big news today is the conclusion of the FOMC meeting. While a 25-basis-point rate cut is widely expected, the Fed's commentary and forward guidance will be just as important as the cut itself. Sometimes, even with a rate cut, if the Fed signals that more hikes could be on the horizon or that current rates are still appropriate for the long term, the market reaction can lead to higher bond yields, and consequently, higher mortgage rates.

I'll be watching Chair Powell's press conference closely for any hints about the Fed's future path. This information is gold for understanding where mortgage rates might be headed in the coming weeks and months.

In conclusion, while the 8 basis point rise in 30-year refinance rates to 6.87% isn't the news many homeowners wished for today, it’s a clear signal to stay informed and act strategically. Understanding these market dynamics, your personal financial picture, and upcoming economic events is key to making the best decision for your homeownership journey.