MORTGAGE INTEREST RATES TODAY: DECEMBER 26, 2025
Mortgage rates are showing minor fluctuations, clinging to stability as reported by Freddie Mac. The current national average for a 30-year fixed mortgage stands at 6.18%, a slight shift from last year’s average of 6.85%. Meanwhile, the 15-year fixed rate has been adjusted to 5.50%, down from the previous year’s 6.00%.
CURRENT MORTGAGE RATES
Referring to the latest Zillow data, here are the current mortgage rates:
- 30-year fixed: 6.10%
- 20-year fixed: 6.00%
- 15-year fixed: 5.52%
- 5/1 ARM: 6.26%
- 7/1 ARM: 6.26%
- 30-year VA: 5.62%
- 15-year VA: 5.31%
- 5/1 VA: 5.25%
These figures indicate national averages that have been rounded to the nearest hundredth.
CURRENT MORTGAGE REFINANCE RATES
Looking at today’s mortgage refinance rates based on the most recent Zillow update:
- 30-year fixed: 6.25%
- 20-year fixed: 5.92%
- 15-year fixed: 5.69%
- 5/1 ARM: 6.44%
- 7/1 ARM: 6.43%
- 30-year VA: 5.55%
- 15-year VA: 5.37%
- 5/1 VA: 5.50%
As with mortgage rates, these are rounded national averages, reflecting the refinancing landscape which can be more complex than standard purchase rates.
MORTGAGE INTEREST RATE MECHANICS
Understanding mortgage interest rates is crucial as they reflect the cost of borrowing funds from a lender, expressed as a percentage. Borrowers can select between two primary types of rates: fixed or adjustable. A fixed-rate mortgage secures the agreed rate throughout the entire loan duration. For instance, a 30-year loan at a fixed rate of 6% remains unchanged for 30 years unless the borrower opts to refinance or sell.
Conversely, an adjustable-rate mortgage (ARM) features a predetermined rate for an introductory period, which then adjusts periodically. An example might be a 7/1 ARM at a beginning rate of 6%, which holds for the first seven years before resetting annually for the remaining 23 years. The fluctuation of rates post-introductory period relies on various economic factors.
CHOOSING THE RIGHT MORTGAGE TERM
A 30-year fixed mortgage is often favored for its lower monthly payment and the predictability it provides. However, it generally incurs a higher interest cost over the life of the loan. In contrast, a 15-year fixed mortgage enables quicker payoff and reduced interest expenses, yet necessitates higher monthly payments. Borrowers must evaluate their financial capacity to handle these payments.
Adjustable-rate mortgages can be attractive for buyers planning for shorter-term stays, given that these usually start lower than fixed rates. Despite this, rates for 5/1 and 7/1 ARMs have recently crept up, occasionally matching or exceeding standard 30-year fixed rates.
OUTLOOK ON MORTGAGE RATES
The trajectory for mortgage rates has generally shown a decline since late May, presently remaining lower than the same period in the previous year. Analysts are predicting that no significant downturns in mortgage rates are expected through the end of 2026, despite recent cuts to the federal funds rate—rates have been notably stagnant since mid-October.
MORTGAGE RATE FAQs
In the current week, the national average for 30-year mortgages slipped slightly to 6.21%, while the average for 15-year mortgages dropped to 5.47%. Predictions for 2026 suggest that the average 30-year mortgage may hover around 6.4%, with slight dips projected for late 2026. Economists indicate that 2027 is unlikely to see significant changes, maintaining averages near 6.3% to 6.4%.
Revisiting refinancing options before the end of 2025 could prove worthwhile for homeowners, considering the current rate environment and lending conditions.
