Key Takeaways
- Today’s Average Rate: The average refinance rate for a 30-year, fixed-rate mortgage is 6.35% as of Tuesday, November 18, 2025.
- Recent Market Trends: Rates have trended downward following recent Federal Reserve rate cuts, offering potential relief for homeowners after a period of stubbornly high interest.
- The “Lock-In” Effect: With 82.8% of homeowners holding mortgage rates below 6%, many are hesitant to refinance or move, creating a slowdown in market activity.
- Is Refinancing Worth It?: A common guideline is to consider refinancing if you can secure a rate at least one full percentage point lower than your current one.
Homeowners considering a mortgage refinance are seeing some stability, with the average rate for a 30-year fixed home loan at 6.35% on Tuesday, November 18, 2025, according to Zillow data. This figure comes after a period of market anticipation following recent moves by the Federal Reserve.
The Current Mortgage Rate Landscape
For much of the past year, mortgage rates have hovered near the 7% mark, a significant jump from the historic lows seen during the pandemic. This elevated rate environment has kept many potential movers and refinancers on the sidelines.
A recent Redfin report highlighted that a staggering 82.8% of homeowners with a mortgage have an interest rate below 6%. This “lock-in” effect means a large portion of the market is unwilling to trade their low-rate loan for a new one at a higher cost.
However, a glimmer of hope appeared for homeowners in late 2025. Mortgage rates began to trend downward ahead of the Federal Reserve’s September meeting, where the central bank announced a much-anticipated quarter-point cut to the federal funds rate. The Fed followed up with another similar cut in October, providing further momentum for lower borrowing costs.
When Does it Make Sense to Refinance?
Refinancing involves replacing your existing home loan with a new one, a process that comes with closing costs typically ranging from 2% to 6% of the loan amount. Because of these fees, it’s crucial to weigh the benefits carefully.
Finding Your Break-Even Point
A widely used rule of thumb suggests that refinancing is often worthwhile if you can lower your interest rate by at least one full percentage point. For example, if your current rate is 7.5%, securing a new loan at 6.5% could lead to significant long-term savings on interest payments.
Beyond securing a lower rate, homeowners refinance for other reasons:
- Cash-Out Refinance: Tapping into your home’s equity to get cash for home improvements, debt consolidation, or other large expenses.
- Change Your Loan Term: Switching from a 30-year mortgage to a 15-year term to pay off your home faster, or vice-versa to lower your monthly payments.
- Switch Loan Types: Moving from an adjustable-rate mortgage (ARM) to a more predictable fixed-rate loan.
Before making a decision, homeowners should shop around with multiple lenders to compare rates and fees, ensuring the financial move aligns with their long-term goals.
Image Referance: https://fortune.com/article/current-refi-mortgage-rates-11-18-2025/