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The final week of 2025 is bringing more than just holiday festivities and year-end reflections. For prospective homebuyers and current homeowners contemplating a refinance, the mortgage rate landscape has evolved considerably from where it stood at the beginning of the year, and is now offering much more affordable rates for borrowers. Much of that is due to the Federal Reserve’s three rate cuts in the second half of the year, which helped reshape borrowing costs across the board.
The relationship between Fed policy and mortgage rates isn’t always straightforward, though. While the central bank’s latest rate cut in early December was widely anticipated, mortgage rates don’t move in lockstep with federal funds rate changes. Instead, they respond to a complex mix of economic signals, including inflation data, employment figures, bond market movements and investor sentiment about the economy’s direction.
All of these factors have been shifting as the calendar year winds down, so borrowers should keep a close eye on what happens in the mortgage interest rate landscape from day to day. Right now, for example, both 30-year and 15-year mortgage loan rates are hovering in territory that seemed out of reach just months ago. Here’s what else to know about today’s mortgage interest rates.
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What are today’s mortgage interest rates?
The average mortgage interest rate on a 30-year fixed mortgage is 5.99% as of December 22, 2025, according to Zillow. The average rate on a 15-year fixed mortgage loan term is 5.38%. These rates represent a meaningful improvement compared to the elevated mortgage rate climate that characterized much of 2023 and 2024, when rates regularly exceeded 7% and occasionally pushed above 8%.
With both conventional terms now below 6%, qualified borrowers are finding themselves in a markedly different environment than they faced even six months ago. That sub-6% threshold has psychological weight in the mortgage market; it’s a number that signals relative affordability and can make monthly payments feel more manageable for buyers working within tight budgets.
Keep in mind, though, that these are the average rates, which means individual borrowers may qualify for different rates depending on their financial profiles. Factors like your credit score, down payment size, loan-to-value ratio, loan type and debt-to-income ratio all influence the specific rate a mortgage lender will offer.
For example, borrowers with excellent credit and substantial down payments may qualify for rates below these averages, while those with weaker financial profiles may see higher rates due to increased lender risk. That’s why shopping around remains critical, as even a difference of 0.25% can translate to thousands of dollars over the life of a 30-year mortgage.
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What are today’s mortgage refinance rates?
The average mortgage refinance rate on a 30-year fixed mortgage is 6.78% as of December 22, 2025, according to Zillow. The average refinance rate on a 15-year fixed term is 5.73%. Mortgage refinance rates typically run slightly higher than mortgage purchase rates, and that pattern continues to hold in today’s market.
As a result, the refinancing opportunities are more limited than the purchase market opportunities may be right now, but they still exist. For example, homeowners who locked in rates above 7.5% or 8% during the peak of the high-rate period may get meaningful savings from refinancing at today’s rates, particularly if they’re willing to switch from a 30-year term to a 15-year term. That shorter term comes with higher monthly payments but also means paying significantly less interest over the life of the loan and building equity faster.
In general, though, most borrowers get the most out of refinancing by waiting until they can reduce their rate by at least 0.50% to 1%, though closing costs and how long you plan to stay in the home also play a role. For borrowers currently carrying rates in the 7% range or higher, today’s 15-year refinance rate of 5.73% crosses that threshold. However, borrowers who secured rates in the low-to-mid 6% range or lower during earlier windows may not find enough savings to justify the closing costs and effort of refinancing.
The bottom line
The average mortgage interest rate on a 30-year fixed mortgage is 5.99% as of December 22, 2025, while 15-year fixed rates average 5.38%. On the refinancing side, 30-year rates currently sit at 6.78% and 15-year rates at 5.73%. With multiple options now available below the 6% mark, qualified buyers have access to financing terms that looked unlikely earlier in the year. So, as the year draws to a close and 2026 approaches, connecting with a mortgage lender to explore your specific options makes a lot of sense, whether you’re looking to purchase a new home or potentially restructure your existing mortgage.