Mortgage Rates Today: 30-Year Refinance Rate Drops by 14 Basis Points

Great news for homeowners looking to refinance! The 30-year fixed refinance rate dropped by 14 basis points to 6.73% as of Friday, November 7, 2025, according to Zillow. This is a welcome relief, and it offers a valuable opportunity to potentially lower your monthly payments. This drop, though seemingly small at first glance, can actually make a noticeable difference.

Mortgage Rates Today: 30-Year Refinance Rate Drops by 14 Basis Points

What a 14 Basis Point Drop Really Means for Your Wallet

Let's break down what this 14 basis point, or 0.14%, drop actually translates to. Imagine you have a $300,000 mortgage.

• At 6.87% (the previous week's average): Your estimated monthly principal and interest payment would be around $1,979.
• At 6.73% (today's rate): Your estimated monthly principal and interest payment drops to about $1,945.

That's a monthly savings of roughly $34. Now, $34 might not sound like a fortune, but think about it over the course of a year – that's almost $400 back in your pocket! Over the life of a 30-year mortgage, those savings can really add up. It’s a good reminder that even small percentage changes in interest rates can have a significant impact on your long-term financial picture.

Why This Refinance Rate Drop Matters Now

A 14 basis point decrease is definitely positive, but it comes at a time when many experts are predicting rates to remain somewhat stable, or even tick up slightly, for the remainder of the year. Zillow's data shows that the national 30-year fixed refinance rate is now at 6.73%, down from 6.87% the week prior.

I’ve been watching these predictions closely, and the general consensus from various housing authorities like Fannie Mae, the Mortgage Bankers Association (MBA), Wells Fargo, and Realtor.com suggests that we’ll likely see 30-year fixed mortgage rates hovering in the low to mid-6% range for the rest of 2025. Some even anticipate a slight dip towards the year’s end, but significant decreases aren't generally expected.

This means that locking in a rate at 6.73% today could be a smart move, especially before any potential market shifts or if forecasts lean towards rates holding steady or inching up. It’s about seizing an opportunity when it’s presented.

Other Refinance Options See Movement Too

It’s not just the 30-year fixed refinance rate that’s changing. Zillow also reported:

• The 15-year fixed refinance rate decreased by 3 basis points to 5.74%. This is a great option for those looking to pay down their mortgage faster and save on overall interest.
• The 5-year ARM (Adjustable-Rate Mortgage) refinance rate dropped by 16 basis points to 7.35%. ARMs can be appealing for their initial lower rates but come with the understanding that they can adjust over time.

Here’s a quick look at the changes:

Mortgage Type	Previous Rate (Approx.)	Current Rate (Nov 7, 2025)	Change
30-Year Fixed	6.87%	6.73%	-14 bps
15-Year Fixed	5.77%	5.74%	-3 bps
5-Year ARM	7.51%	7.35%	-16 bps

This highlights that the mortgage market is dynamic, and rates are constantly responding to various economic signals.

What's Driving These Rate Changes?

It’s easy to just see a number and say “it went up” or “it went down,” but understanding why is crucial. Mortgage rates, especially the 30-year fixed, are closely tied to the 10-year Treasury yield. This yield isn't just pulled out of thin air; it's influenced by a complex web of economic factors.

Here are some of the key players:

• Federal Reserve Policy: The Fed has made a couple of moves this year, cutting its benchmark federal funds rate in September and October to try and give the economy a boost. While these cuts don't directly set mortgage rates, they certainly shape the overall economic mood. The big question on everyone's mind is whether they'll cut again in December. This uncertainty can lead to a bit of a rollercoaster ride in the markets.
• Inflation and Economic Data: Inflation is still a bit stubborn, hanging out above the Fed's preferred 2% target. This persistent inflation can be a reason for rates to stay a bit higher than we might like. On the flip side, if we see signs of the economy slowing down or the job market cooling, that could put downward pressure on rates. However, strong jobs reports can have the opposite effect, pushing rates higher. It's a constant balancing act.
• Bond Market Movement: As I mentioned, mortgage rates often follow the yields on 10-year Treasury bonds. When those yields climb, mortgage rates typically follow suit, and vice versa. It's a pretty direct relationship that investors watch very closely.
• Government Shutdowns: Believe it or not, a government shutdown can actually add to the confusion in the market. When key economic data gets delayed because of it, it makes it even harder for analysts to make accurate predictions.

Forecasts for the Remainder of 2025

Looking ahead, what can we expect? Most housing authorities are pointing towards a relatively stable environment for 30-year fixed mortgage rates through the end of 2025.

Here’s a snapshot of what some major housing authorities are predicting for the end of the year:

Housing Authority	Q4 2025 Forecast
Fannie Mae	6.3%
Mortgage Bankers Association (MBA)	6.4%
Wells Fargo	6.3%
Realtor.com	6.4%

It's good to remember these are average predictions. The actual rates will dance around these numbers based on how the economy truly performs.

My Takeaway: Is it Time to Refinance?

As someone who’s helped clients navigate the mortgage process, I always advise against trying to perfectly time the market. Housing markets are notoriously unpredictable. The experts are generally not forecasting a return to the ultra-low rates we saw during the pandemic.

So, if you’ve found a home that truly fits your needs and your budget, and your financial situation is stable, it might be worthwhile to move forward now. You can always explore refinancing down the line if rates do dip significantly. However, if you’re looking to lower your current monthly payments, this current drop is a definite sign to explore your options.

My biggest piece of advice, regardless of market conditions, is to shop around and compare offers from multiple lenders. Don't just go with the first one you talk to. Different lenders have different rates and fees, and by comparing, you can ensure you're getting the best possible deal for your unique financial situation. Mortgage rates are just one piece of the puzzle; closing costs and loan terms also play a big role in the overall cost of your loan.

This 14 basis point drop on the 30-year refinance rate is certainly a welcome development. It gives homeowners a tangible opportunity to potentially reduce their monthly expenses and save money over time. It’s a good day to be looking at your mortgage!