Today’s Mortgage Rates – November 5: Rates Drop Offering Borrowers Relief

If you’re checking in on Today's Mortgage Rates on November 5, here’s the headline: they’ve nudged down just a hair, offering a glimmer of relief in what’s been a bit of a rollercoaster for homebuyers and homeowners alike. According to Zillow, the average rate for a 30-year fixed mortgage has eased to 6.08%, a four-basis-point dip, while the popular 15-year fixed rate is now at 5.62%.

While these movements might seem small, for anyone navigating the housing market, these subtle shifts can make a real difference in your monthly payments and long-term savings. It’s not a dramatic drop, but it's a movement in the right direction, and that’s worth paying attention to.

Today's Mortgage Rates – November 5: Rates Drop Offering Borrowers Relief

Breaking Down Today's Numbers

Let's get down to the specifics. It's always smart to see where things stand with the major loan types. Zillow provides a clear snapshot of the national averages:

Loan Type	Average Rate
30-year fixed	6.08%
20-year fixed	5.89%
15-year fixed	5.62%
5/1 ARM	6.41%
7/1 ARM	6.48%
30-year VA	5.67%
15-year VA	5.19%
5/1 VA	5.53%

It’s important to remember that these are national averages. Your personalized rate will depend on many factors, including your credit score, the size of your down payment, and the specific lender you choose.

What a Basis Point Really Means for Your Wallet

The term “basis point” is tossed around a lot. Think of it this way: one basis point is equal to 0.01% of a loan amount. So, when a rate dips by four basis points, that's a 0.04% decrease. On a large mortgage, say $300,000, a 0.04% difference might not sound huge. But over the 30 years of a mortgage, it can add up to thousands of dollars in savings.

For example, a principal and interest payment on a $300,000 30-year loan at 6.08% is roughly $1,818 monthly. If the rate were just 0.04% higher, at 6.12%, your payment would be around $1,830. That's an extra $12 a month, or almost $144 a year. Over 30 years, that's $4,320 in extra interest paid. Tiny dips can indeed have a big impact over time.

Refinancing: Is Today a Good Day?

If you're a homeowner looking to refinance, the story is slightly different but still warrants attention. Refinance rates tend to be a bit higher as they reflect current market conditions for new loans. According to Zillow's data for refinancing today, November 5:

Loan Type (Refinance)	Average Rate
30-year fixed	6.31%
20-year fixed	6.08%
15-year fixed	5.76%
5/1 ARM	6.49%
7/1 ARM	6.44%
30-year VA	5.87%
15-year VA	5.69%
5/1 VA	5.51%

If your current mortgage rate is significantly higher than these refinance rates, and you plan to stay in your home for a while, it might be worth exploring the possibility. The key is to run the numbers carefully and factor in closing costs to ensure the savings are substantial enough to justify the move. I always advise people to look at the “break-even point”—how long it will take for the monthly savings to recoup the upfront costs.

Why Treasury Yields Are the Unseen Hand

You might wonder why mortgage rates seem to move with the stock market or economic news. A big part of the answer lies in Treasury yields, particularly the yields on the 10-year Treasury note. This is because mortgage-backed securities, which are essentially bundles of mortgages sold to investors, are often compared to—and compete with—Treasury bonds for investor dollars. When Treasury yields go up, investors demand higher returns from mortgage-backed securities, which translates to higher mortgage rates. Conversely, when Treasury yields fall, mortgage rates tend to follow suit.

So, when you hear about economic data releases or the Federal Reserve's actions, understand that they often influence Treasury yields, which in turn influence the rates we see for our mortgages. It's an interconnected financial ecosystem.

What the Experts Are Saying for the Rest of 2025

Looking ahead, it’s clear that we're not likely to see a dramatic plunge back to the historic lows we witnessed a couple of years ago. Many housing authorities and economic forecasters are painting a picture of continued modest fluctuation in the low-to-mid 6% range for 30-year fixed mortgage rates through the end of 2025.

For instance, both the Mortgage Bankers Association (MBA) and Fannie Mae project an average rate of 6.4% for the fourth quarter of 2025. The National Association of Realtors (NAR) is a bit more conservative, anticipating an average of 6.7% for the year, while Wells Fargo offers a forecast of 6.54%.

Key Drivers Shaping the Future of Mortgage Rates

Several factors will be pulling and pushing these rates:

• Federal Reserve's Stance: While the Fed doesn't set mortgage rates directly, its decisions on the federal funds rate ripple through the entire economy. If the Fed continues its path of rate adjustments, or if its future commentary suggests a particular direction, it will influence borrowing costs. We’ve seen the Fed implement cuts recently, but the path forward for further reductions is still a subject of much debate and economic interpretation.
• Economic Indicators: Inflation and employment data are king here. If inflation remains stubbornly high or employment figures show unexpected strength, it could put upward pressure on rates. On the other hand, signs of a cooling economy or a softening job market could lead to lower borrowing costs.
• Government Shutdowns & Data Delays: Believe it or not, even government shutdowns can impact rates! When agencies responsible for releasing crucial economic data are stalled, it creates uncertainty. This uncertainty can make it harder for the Fed and markets to gauge the true health of the economy, leading to more cautious rate movements.
• Housing Market Strength: If the housing market continues to show surprising resilience and demand, it could keep mortgage rates elevated longer than expected. Conversely, a weaker housing market might prompt lenders to offer more competitive rates to attract buyers.

The Balancing Act: Downside vs. Upside Pressure

There's a constant tug-of-war happening.

• Downside Pressure: If new economic reports consistently show signs of slowing growth, weakening employment, and falling inflation, we could see rates gradually ease back towards the lower end of the 6% range by year-end.
• Upside Pressure: Conversely, if inflation proves “sticky” (meaning it doesn't come down easily) or the economy shows more robust growth than anticipated, rates might remain stubbornly higher or even tick up slightly.

My Two Cents for Homebuyers and Refinancers

From my perspective, after tracking these markets for what feels like ages, I'd say this: waiting for a dramatic drop in mortgage rates is a risky strategy. The days of 3% mortgages are very likely behind us for the foreseeable future. While we might see some minor dips, locking in a 6.08% rate today, if it works for your budget and financial goals, might be a far better move than hoping for a miracle that may never arrive.

For those of you considering a home purchase, my best advice remains consistent: shop around. Don't just go with the first lender you speak to. Get quotes from multiple banks, credit unions, and mortgage brokers. Even a quarter-percent difference can save you tens of thousands of dollars.

And for homeowners thinking about refinancing, do your homework. Crunch the numbers, understand all the fees, and make sure the long-term savings truly outweigh the upfront costs. Patience is often rewarded, but so is decisive action when the numbers make sense.