Mortgage Rates Today, Nov 6, 2025: 30-Year Refinance Rate Drops by 16 Basis Points

Today, November 6, 2025, the national average 30-year fixed refinance rate has dipped to 6.74%, a significant decrease of 16 basis points from yesterday’s 6.90%, according to Zillow. This is a welcome drop for many, and if you’ve been on the fence about refinancing, this might be the nudge you need to explore your options and potentially lock in a lower monthly payment.

Mortgage Rates Today, Nov 6, 2025: 30-Year Refinance Rate Drops by 16 Basis Points

Why a 16 Basis Point Drop Matters More Than You Think

When we talk about mortgage rates, those seemingly small percentage point changes can actually add up to a substantial difference in your monthly payments over the life of your loan. Let’s break down what a 16 basis point drop really means. A basis point is simply one-hundredth of a percent. So, a 16 basis point drop means the rate is 0.16% lower.

For example, if you have a $300,000 mortgage, a rate of 6.90% would mean a monthly principal and interest payment of about $1,956. Dropping that rate to 6.74% brings your monthly payment down to roughly $1,922. That’s a savings of about $34 per month, which translates to nearly $408 per year. Over 30 years, that’s a total of over $12,000 in savings! It might not sound like a fortune overnight, but it’s a tangible reduction in your housing expenses.

Refinance Timing: Is Now the Time for You?

As experts who have been watching the mortgage and housing markets for years, I can tell you that timing is everything when it comes to refinancing. While this 16 basis point drop is excellent news, it’s also important to understand the bigger picture.

According to Zillow's latest report, the 30-year fixed refinance rate falling to 6.74% is part of a trend that has seen rates decrease by 13 basis points from the previous week's average of 6.87%. This indicates a softening in the refinance market, driven by several factors we'll explore.

However, it’s crucial to remember that mortgage rates are influenced by a lot of moving parts, including actions by the Federal Reserve and broader economic conditions. While today’s rates are attractive, it’s always wise to compare them with where they were recently and consider what might happen next. I personally believe that while this drop is great, the very best rates of this particular easing cycle might have already passed. This drop is more like a welcome reprieve than a signal for a dramatic plunge.

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

When you're looking to refinance, you usually have two main choices for fixed-rate mortgages: the 30-year and the 15-year terms. Today's data from Zillow gives us a clear comparison:

• 30-Year Fixed Refinance Rate: Currently at 6.74%. This offers lower monthly payments, making it more accessible for many homeowners.
• 15-Year Fixed Refinance Rate: Decreased to 5.74%. This rate is significantly lower than the 30-year option, but it comes with higher monthly payments.

What's the trade-off? Opting for a 15-year mortgage means you'll pay off your home much faster and save a considerable amount on interest over time. However, your monthly payments will be higher. If your budget can handle it, a 15-year refinance is often a financially sound decision. If your priority is lowering your monthly outflow, the 30-year fixed is the way to go. It's a personal finance decision that depends entirely on your individual circumstances and financial goals.

What About Adjustable-Rate Mortgages (ARMs)?

It’s also worth noting how other loan types are performing. The 5-year ARM refinance rate has nudged up slightly to 7.44%, an increase of 2 basis points. This is an interesting contrast. ARMs often start with lower teaser rates than fixed mortgages, but they carry the risk of your payments increasing significantly when the fixed-rate period ends and the rate adjusts to market conditions. Given the recent trend and the slight uptick in the 5-year ARM, a fixed-rate mortgage, especially with today’s drop, might offer more peace of mind for many.

Refinancing Costs and Fees: Don't Forget These!

It’s easy to get excited about a lower interest rate, but remember that refinancing isn’t free. Like when you first bought your home, there will be closing costs involved. These can include:

• Appraisal fees
• Title insurance
• Lender fees
• Recording fees
• Escrow fees

Before you jump into refinancing, I always advise homeowners to get a clear breakdown of all these costs and calculate your “break-even point.” This is the point at which the savings from your lower monthly payment will cover all the costs of refinancing. If you plan to move or sell your home before you reach that break-even point, refinancing might not be financially beneficial for you.

How Market Trends and the Fed Are Influencing Your Mortgage Rates

So, what’s behind this drop in mortgage rates today? It’s a complex interplay of economic signals and the Federal Reserve’s recent decisions.

The Federal Reserve's Role: The Fed recently made its second consecutive cut to its benchmark interest rate, lowering it by 0.25 percentage points to a target range of 3.75% to 4.00%. This move signals their growing concern about the economy softening, particularly in terms of jobs.

However, the Fed’s messaging is a mixed bag. Fed Chair Powell indicated that another rate cut in December is “not a foregone conclusion.” This caution is due to mixed economic signals and disruptions in data collection caused by a government shutdown. This cautious forward guidance is likely why we're seeing some market volatility rather than a continued, steep dive in rates.

Economic Context: The economy is presenting conflicting signals. While there are clear signs of weakening in the labor market, which pushed the Fed to cut rates, inflation remains stubbornly above their 2% target. This high inflation creates a dilemma for the Fed, as cutting rates too aggressively could fuel even more price increases. The government shutdown has only added to the complexity by creating gaps in economic data, making it harder for the Fed and markets to gauge the true economic health.

Market Reaction: Following Chair Powell’s comments, the 10-Year Treasury yield, a key indicator for mortgage rates, saw a slight increase, settling around 4.08%. This shows how sensitive the market is to the Fed’s signals. When the Fed suggests further rate reductions might not be immediate, Treasury yields, and consequently mortgage rates, tend to stabilize or even tick up.

What This Means for You Right Now

For Homeowners: Today’s 6.74% rate for a 30-year fixed refinance is a strong opportunity if your current rate is higher. The end of quantitative tightening (QT) by the Fed on December 1st is also expected to provide some underlying support for mortgage markets, potentially capping significant rate increases in the near term. However, as I mentioned earlier, the absolute lowest rates of this cycle might be behind us, so acting sooner rather than later could be beneficial.

For Buyers: The housing market remains more favorable for buyers than it was at the peaks of 2024, but the rapid improvement in conditions might be pausing temporarily due to this market uncertainty.

For Sellers: Housing demand is expected to stay steady, though the overall pace of market activity might moderate a bit as buyers and sellers assess the evolving economic picture.

What's Next? Key Factors to Watch

The coming weeks will be crucial for understanding the future direction of mortgage rates. Here's what I'll be closely monitoring:

• Post-Shutdown Data: Economic reports released in November will be vital for the Fed's December policy decisions.
• Labor Market Trends: Any further weakening here will put more pressure on the Fed to ease monetary policy.
• Inflation Readings: If inflation starts to accelerate again, it could put a halt to the current easing cycle.
• Market Technicals: The impact of the Fed ending quantitative tightening will be interesting to observe, and it could help put a lid on any significant rate increases.

In conclusion, November 6, 2025, brings a welcome decrease in 30-year fixed refinance rates. While it's a positive sign for homeowners looking to reduce their monthly payments, it’s essential to weigh the costs of refinancing against the potential savings and consider the broader economic and policy trends.