J Studios/Getty Images
After a year defined by shifting economic signals and a steady cooling of inflation, many homebuyers are ending 2025 with a renewed sense of possibility. The Federal Reserve’s three rate cuts — in September, October and most recently on December 10 — have eased some of the financial pressure buyers faced earlier in the year. And with inflation softening again recently, households are watching closely to see whether mortgage rates are finally settling into a more affordable range.
But even with these encouraging trends, the mortgage market is still reacting day by day to new data, forecasts and investor sentiment. That’s why the rate you see today may look meaningfully different from the figures available just a few weeks ago, and why experts warn that positive momentum doesn’t guarantee a smooth path ahead. Rates have come down from their 2025 highs, but they continue to adjust in real time as lenders recalibrate risk, pricing models and expectations for early 2026.
For borrowers, that makes the final days of the year a pivotal moment. So what are today’s mortgage rates and what refinance rates could borrowers obtain in this market?
Compare your top mortgage loan options online now.
What are today’s mortgage interest rates?
The average mortgage interest rate on a 30-year fixed mortgage is 5.99% as of December 23, 2025, according to Zillow. For borrowers considering a shorter term, the average 15-year mortgage rate is 5.38%.
Both figures represent a meaningful improvement from the rate environment that opened the year, when 30-year averages hovered well above 6.5% and affordability felt increasingly out of reach for many buyers. Today’s sub-6% levels haven’t been typical in recent years, and while the difference of a few basis points might feel small on paper, the long-term savings can be substantial, especially when stretched across a 30-year payoff timeline.
These are also just averages. Well-qualified buyers, meaning those with strong credit, stable income and lower debt-to-income ratios, may find opportunities to secure even better pricing by comparing offers from multiple lenders. Competition tends to tighten in lower-rate environments, and lenders often make small but impactful adjustments to win business during periods of increased buyer activity.
Still, market conditions can turn quickly. While inflation has been easing and the Fed’s recent cuts continue to filter through the lending system, any unexpected shift in economic data could stall or temporarily reverse this progress. If today’s numbers align with your budget and long-term goals, it may make sense to finalize your mortgage strategy before the year’s end.
Lock in an affordable mortgage loan rate today.
What are today’s mortgage refinance rates?
Homeowners considering a refinance may also find improved opportunities. As of December 23, 2025, the average 30-year refinance rate is 6.64%, according to Zillow, while the average 15-year refinance rate is 5.63%.
These rates won’t benefit every homeowner — particularly those who locked in rates under 5% in prior years — but they can be worthwhile for specific borrowers. If your current rate is above 7%, today’s averages may offer enough of a gap to justify running the numbers. Many financial experts recommend refinancing only when a new rate is at least 0.50% to 1% lower than your existing one. With today’s environment, homeowners holding higher-rate loans from 2023 or 2024 may find themselves within that threshold.
A shorter-term refinance, such as a 15-year mortgage loan, may be especially appealing. While monthly payments will generally be higher, the interest savings over the life of the loan can be significant. And with today’s 15-year refinance rate holding well below the 6% mark, some borrowers may find a rare window to reduce both their rate and their timeline without overstretching their budget.
As always, refinancing decisions should account for more than just the headline rate. Closing costs, break-even timelines and personal financial goals all play a meaningful role. But with rates trending lower, it’s a good time for homeowners to revisit their numbers and determine whether a refinance aligns with their broader financial strategy heading into 2026.
The bottom line
The average mortgage interest rate today — 5.99% for a 30-year mortgage and 5.38% for a 15-year mortgage — reflects a more favorable borrowing environment than what many buyers faced earlier in 2025. Refinance rates, at 6.64% for 30-year terms and 5.63% for 15-year options, also present improved opportunities for select homeowners.
With the Fed’s latest rate cut continuing to ripple through the market and inflation showing further signs of cooling, buyers and homeowners may find the closing days of the year offer a uniquely stable moment in an otherwise unpredictable rate cycle. So, it may help to consider speaking with a mortgage lender who can help you compare today’s offers, run affordability scenarios and determine whether now is the right time to lock in a rate.