Additional Coverage:
Mortgage Rates Hold Steady, Refinance Rates Dip as Fed Decision Looms
Local homebuyers and homeowners eyeing a refinance might find themselves in a surprisingly opportune moment, even amidst the festive bustle of December 2025. While the holiday season may seem an unlikely time to shop for mortgage rates, the current climate suggests otherwise, with interest rates on a gradual decline throughout much of the year.
Experts are watching closely for a potential Federal Reserve interest rate cut on December 10, which would mark the third such cut in four months. Such a move could further cool the overall interest rate environment, potentially pushing mortgage rates below the three-year lows they’ve been hovering near since September.
However, for many prospective buyers and current homeowners, waiting might not be necessary. Several mortgage interest rate options are already available under 6%, making action now a potentially affordable choice.
Current Mortgage Interest Rates (as of December 5, 2025):
According to Zillow data, the average mortgage interest rate for a 30-year term holds steady at 5.99% as of December 5, 2025. This rate has remained consistent in recent days, as the market anticipates the Fed’s upcoming decision. Similarly, the average mortgage interest rate for a 15-year term also maintained its recent level, coming in at 5.37%.
With both rates currently under 6% – a notable decrease from rates often exceeding 7% earlier this year in January – these figures may already be attractive enough to encourage re-entry into the homebuying market. It’s crucial for individuals to shop around and compare rates from various lenders, as these are just averages, and some qualified borrowers may find even lower rates.
Today’s Mortgage Refinance Rates:
For homeowners considering a refinance, there’s good news. The average mortgage refinance interest rate for a 30-year term saw a decline on December 5, 2025, settling at 6.62%, according to Zillow.
The average refinance rate for a 15-year term also decreased, reaching 5.51% on Friday morning. These lower refinance rates present a significant interest-saving opportunity for homeowners currently holding rates in the 7% or higher range.
It’s important to remember that refinancing, like a new mortgage, involves closing costs. Therefore, homeowners should carefully assess whether the potential savings from today’s lower rates are substantial enough to outweigh these upfront costs. For those planning to move before reaching the break-even point, refinancing may not offer the same advantages, even with the 15-year option now significantly below 6%.
The Bottom Line:
While average mortgage interest rates for 30-year and 15-year terms remained consistent on December 5, 2025, at 5.99% and 5.37% respectively, refinance rates experienced a welcome decline. Refinance rates for a 30-year term dropped to 6.62%, and for a 15-year term, they fell to 5.51%.
This shift could open up new, cost-effective opportunities for existing homeowners. As the holiday season progresses, taking the time to shop for rates, lenders, and terms could lead to an early holiday gift in the form of a more affordable home purchase or refinance rate.