Mortgage Rates Today, Nov 28: 30-Year Refinance Rate Drops by 5 Basis Points

If you're like me, you're constantly keeping an eye on mortgage rates. It's a big deal when you're thinking about buying a home or, like many, considering a refinance. So, here's the scoop: Today, November 28, 2025, the national average 30-year fixed refinance rate dropped slightly by 5 basis points to 6.78%, according to the latest data from Zillow.

While a 5 basis point drop might not seem like a huge deal at first glance, it can still impact your monthly payments and overall financial strategy. Let's dive into what this means for you, the current refinance landscape, and some key factors to consider.

Mortgage Rates Today, Nov 28: 30-Year Refinance Rate Drops by 5 Basis Points

A Closer Look at Today's Refinance Rates

Zillow reports the following changes in refinance rates today:

• 30-Year Fixed Refinance Rate: 6.78% (Down 5 basis points from 6.83%)– The same as last weeks's average rate.
• 15-Year Fixed Refinance Rate: 5.69% (Down 3 basis points from 5.72%)
• 5-Year ARM Refinance Rate: 7.59% (Up 15 basis points from 7.44%)

What a 5 Basis Point Drop Means for Monthly Payments

Okay, let's break down what a 5 basis point drop really means. One basis point is equal to 0.01%. So, a 5 basis point drop translates to a 0.05% decrease in your interest rate. Honestly, it's not a huge difference on its own, but it can add up over time, especially with a large mortgage.

To illustrate, let's imagine you have a $300,000 mortgage. Without factoring in any fees and costs, here is how much of a difference it can make in monthly payments:

• At 6.83%: Your approximate monthly payment (principal and interest) would be about $1,969.
• At 6.78%: Your approximate monthly payment (principal and interest) would be about $1,960.

That's a savings of around $9 per month,. While it might seem small, over the 30-year term, you'd save over $3,200.

Key Factors Influencing Refinance Eligibility

Besides the current rate environment, there are other factors that determine whether you can actually qualify for a refinance. These include:

The Role of Credit Scores in Refinancing

Your credit score is critical to getting a good refinance rate. Lenders use your credit score to assess the risk of lending you money. The higher your score, the lower the interest rate you're likely to get. Aim for a credit score of 740 or higher to qualify for the best rates.

Loan-to-Value (LTV) Ratio

Your LTV ratio is the amount of your loan compared to the appraised value of your home. A lower LTV ratio (meaning you have more equity in your home) makes you a less risky borrower, which can result in a better rate. A general thumb rule is your LTV should be at least 80% or lower to qualify for better mortgage rates.

Debt-to-Income (DTI) Ratio

Lenders also look at your DTI Ratio. This is your monthly debt payments compared to your gross monthly income. The lower your DTI, the better. Lenders want to see that you have enough income to comfortably manage your debt.

Income Stability and Employment History

Lenders prefer borrowers with a stable income and a solid employment history. A consistent employment record demonstrates your ability to consistently repay the loan.

Benefits of Refinancing for First-Time Homeowners

Refinancing isn't just for seasoned homeowners. If you're a first-time home buyer, there are several advantages to refinancing depending on when you bought your house and at what rates.

• Lower Interest Rate: If interest rates have dropped since you got your original mortgage, refinancing can save you money over the life of the loan.
• Shorter Loan Term: Refinancing from a 30-year to a 15-year mortgage can help you pay off your home faster and save on interest.
• Changing Loan Type: You could switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage for more stability.
• Cash-Out Refinance: This option allows you to tap into your home's equity for things like renovations or debt consolidation.

How Interest Rate Fluctuations Affect Refinancing Decisions

Interest rates are constantly in motion, depending on the economic indicators. These can heavily affect mortgage refinance decisions.

• Economic Growth: A strong economy can lead to higher interest rates due to increased demand for loans.
• Inflation: High inflation often results in higher interest rates as the Federal Reserve tries to control rising prices.
• Federal Reserve Policy: The Fed's decisions on interest rates directly impact mortgage rates.
• Global Economic Conditions: Events happening around the world can affect U.S. interest rates.

Latest Trends in Mortgage Refinance Rates

Besides today's slight dip in rates, there are a few other trends worth noting:

• Home equity lines of credit (HELOCs) are an alternative: Many homeowners are taking advantage of HELOCs or home equity loans to access their home equity (instead of refinancing and losing their low mortgage rates.
• Refinancing boom unlikely: Experts don't expect a refinance boom anytime soon. A big drop in rates would be needed to kickstart one.

Mortgage Refinance Alternatives

If refinancing doesn't seem like the best option for you, there are other avenues to consider:

• Home Equity Loan: Provides a lump sum with a fixed interest rate, ideal for specific large expenses.
• HELOC (Home Equity Line of Credit): Offers flexible access to funds with a variable interest rate, suitable for ongoing or unpredictable expenses.
• Personal Loan: An unsecured loan that can be used for various purposes without tapping into home equity, but may come with higher interest rates.
• Stay Put: Sometimes, the best option is to wait for more favorable market conditions or improved personal circumstances.
• Renegotiate: Call your lender and renegotiate terms and conditions.
• Blend Equity Release / Retirement Mortgages: This is applicable for people who are 55 and over.

Takeaway

Even though rates aren't at pandemic-era lows, think deeply about if refinancing is right for you now if rates have dropped since you opened your mortgage. Even with the 5 basis point dip in 30-year refinance rates today, it's important to remember that the decision to refinance depends on multiple factors. Keep your eye on those credit scores, shop around with multiple lenders, and crunch numbers to determine whether such decisions are right for you.