Mortgage and refinance interest rates today, December 25, 2025: Mortgage rates drifting

Mortgage rates proceed drifting with tiny changes. According to Freddie Mac, the mean 30-year fixed owe complaint this week is down 3 ground points to 6.18%. The 15-year fixed complaint is up 3 ground points for the week to 5.50%.

“The mean 30-year fixed-rate owe decreased further this week,” said Sam Khater, Freddie Mac’s main economist. “Declining rates connection a timely and invited acquisition for aspiring homebuyers.”

• See which lenders person the champion owe rates this week, Dec. 22-26, 2025.

Here are the existent owe rates, according to the latest Zillow data:

• 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%

Remember, these are the nationalist averages and rounded to the nearest hundredth.

Here are 8 strategies for getting the lowest owe complaint possible.

Here are today's owe refinance involvement rates, according to the latest Zillow data:

• 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 owe rates for purchase, these are nationalist averages that we've rounded to the nearest hundredth. Refinance rates tin beryllium higher than acquisition owe rates, but that isn't ever the case.

Use the owe calculator beneath to spot however assorted owe rates volition interaction your monthly payments.

You tin bookmark the Yahoo Finance owe outgo calculator and support it useful for aboriginal use, arsenic you store for homes and lenders. Be definite to usage the dropdown to see backstage owe security costs and HOA dues if they use to you. These monthly expenses, on with your owe main and involvement rate, volition springiness you a realistic thought of what your monthly outgo could be.

A owe involvement complaint is the interest charged by a lender for borrowing money, expressed arsenic a percentage. There are 2 basal types of owe rates: fixed and adjustable rates.

A fixed-rate owe locks successful your complaint for the full beingness of your loan. For example, if you get a 30-year owe with a 6% involvement rate, your complaint volition stay astatine 6% for the full 30 years. (Unless you refinance oregon merchantability the home.)

An adjustable-rate owe keeps your complaint the aforesaid for the archetypal fewer years, past changes it periodically. Let’s accidental you get a 5/1 ARM with an introductory complaint of 6%. Your complaint would beryllium 6% for the archetypal 5 years, and past the complaint would summation oregon alteration erstwhile per twelvemonth for the past 25 years of your term. Whether your complaint goes up oregon down depends connected respective factors, specified arsenic the system and U.S. lodging market.

At the opening of your owe term, astir of your monthly outgo goes toward interest. As clip passes, little of your outgo goes toward interest, and much goes toward the owe main oregon the magnitude you primitively borrowed.

• Learn however to take betwixt an adjustable-rate vs. fixed-rate mortgage.

Two categories find owe rates: those you tin power and those you cannot.

What factors tin you control? First, you tin comparison the champion owe lenders to find the 1 that gives you the lowest complaint and fees.

Second, lenders typically widen little rates to radical with higher recognition scores, little debt-to-income (DTI) ratios, and sizeable down payments. If you tin prevention much oregon wage down indebtedness earlier securing a mortgage, a lender volition astir apt springiness you a amended involvement rate.

What factors tin you not control? In short, the economy.

The database of ways the system impacts owe rates is long, but present are the basal details. If the system — for example, employment rates — is struggling, owe rates alteration to promote borrowing, which helps boost the economy. If the system is strong, owe rates spell up to temper spending.

With each different factors being equal, owe refinance rates are typically somewhat higher than acquisition rates. So don't beryllium amazed if your refinance complaint is higher than you whitethorn person expected.

Two of the astir communal owe presumption are 30-year and 15-year fixed-rate mortgages. Both fastener successful your complaint for the full indebtedness term.

A 30-year owe is fashionable due to the fact that it has comparatively debased monthly payments. But it comes with a higher involvement complaint than shorter terms, and due to the fact that you’re accumulating involvement for 3 decades, you’ll wage a batch of involvement successful the agelong run.

A 15-year owe tin beryllium a bully prime due to the fact that it has a little complaint than you’ll get with longer terms, truthful you’ll wage little successful involvement implicit the years. You’ll besides wage disconnected your owe overmuch faster. But your monthly payments volition beryllium higher due to the fact that you’re paying disconnected the aforesaid indebtedness magnitude successful fractional the time.

Basically, 30-year mortgages are much affordable from period to month, portion 15-year mortgages are cheaper successful the agelong run.

According to Yahoo Finance's play survey of lenders with the lowest rates, immoderate of the banks with the lowest median owe rates are Chase and Citibank. However, it's a bully thought to store astir for the champion complaint with not conscionable banks, but besides recognition unions and companies specializing successful owe lending.

Yes, 2.75% is simply a fantastic owe rate. You're improbable to get a 2.75% complaint successful today's marketplace unless you instrumentality connected an assumable owe from a seller who locked successful this complaint successful 2020 oregon 2021, erstwhile rates were astatine all-time lows.

According to Freddie Mac, the lowest-ever 30-year fixed owe complaint was 2.65%. This was the nationalist mean successful January 2021. It is highly improbable that rates volition dip beneath 3% again anytime soon.

Some experts accidental it's worthy refinancing erstwhile you tin fastener successful a complaint that's 2% little than your existent owe rate. Others accidental 1% is the magic number. It each depends connected what your fiscal goals are erstwhile refinancing, and erstwhile your break-even constituent would beryllium aft paying refinance closing costs.