Additional Coverage:
Mortgage Rates See Further Declines Following Latest Fed Cut
[City, State] – December 13, 2025 – The housing market is experiencing a notable shift as homebuying costs continue their gradual descent throughout 2025. This week’s final Federal Reserve meeting of the year delivered a crucial interest rate cut, providing much-needed clarity for lenders and ushering in a more favorable environment for prospective homebuyers and those looking to refinance.
For much of the year, buyers and homeowners have grappled with mortgage interest rates that were significantly higher than those seen at the start of the decade. However, 2025 has brought a steady decline, culminating in the federal funds rate reaching its lowest point since 2022. This positions mortgage rates for further reductions, even if those improvements arrive incrementally.
Federal Reserve Chairman Jerome Powell’s post-meeting remarks regarding the trajectory of rate cuts in 2026 have offered additional insights for the lending community, moving them out of the uncertainty that often precedes such decisions.
So, what do these changes mean for today’s mortgage interest rates, as of December 12, 2025?
Current Mortgage Interest Rates
According to Zillow, the average mortgage interest rate for a 30-year term saw a slight decrease on December 12, 2025, landing at 5.99%. For a 15-year term, the average rate stood at 5.37% as of Friday. With both options now comfortably below 6%, and considering they were considerably higher just at the beginning of 2025, these rates may be attractive enough to prompt action for many.
While these rates don’t quite match the record lows observed earlier in the decade, they are now aligning with historical averages. Buyers are encouraged to shop around online, as some lenders may be offering rates even lower than these reported averages.
It’s worth noting, however, that mortgage interest rates have occasionally seen slight upticks following previous Fed rate cuts. Therefore, if current rates are within your budget, securing a favorable rate now could be a prudent move, with future refinancing always an option.
Current Mortgage Refinance Rates
For homeowners considering a refinance, the average rate for a 30-year term increased slightly to 6.77% on December 12, 2025, up from 6.67%. The average refinance rate for a 15-year term remained consistent at 5.67%.
While these rates might be appealing for some, it’s crucial to remember that mortgage refinancing involves closing costs. Homeowners should carefully weigh these upfront expenses against the potential monthly savings to determine the overall value of a refinance. Additionally, if there’s a possibility of selling the home before reaching the break-even point on those costs, refinancing may not be the most advantageous path.
The Bottom Line
As of December 12, 2025, the average interest rate for a 30-year mortgage is 5.99%, while a 15-year option sits at 5.37%. For those looking to refinance, the median rate for a 30-year term is 6.77%, with a 15-year refi option at 5.67%. With multiple avenues now available to secure a rate under 6%, both for homebuyers and current homeowners, this week’s Federal Reserve rate cut serves as a significant motivator to re-evaluate purchase and refinance opportunities.