Mortgage and refinance interest rates today, December 21, 2025: Bouncing within a narrow lane

Core Insights - Mortgage rates are currently stable, with the average 30-year fixed mortgage rate at 6.03% and the 15-year fixed rate at 5.42% [1][17] Current Mortgage Rates - The national average for various mortgage types includes: - 30-year fixed: 6.03% - 20-year fixed: 5.95% - 15-year fixed: 5.42% - 5/1 ARM: 6.03% - 7/1 ARM: 6.18% - 30-year VA: 5.46% - 15-year VA: 5.05% - 5/1 VA: 5.16% [5] Mortgage Refinance Rates - Current mortgage refinance rates are generally higher than purchase rates, although this is not always the case [3] Monthly Payment Calculations - A $300,000 mortgage at a 30-year term with a 6.03% rate results in a monthly payment of approximately $1,804, totaling $349,599 in interest over the loan's life - The same mortgage at a 15-year term with a 5.42% rate results in a monthly payment of $2,439, with total interest of $138,936 [8] Fixed vs. Adjustable-Rate Mortgages - Fixed-rate mortgages lock in the interest rate for the entire loan term, while adjustable-rate mortgages (ARMs) have a fixed rate for an initial period before adjusting based on market conditions [9][10] - ARMs typically start with lower rates than fixed rates, but fixed rates have recently been competitive [11] Strategies for Lower Mortgage Rates - To secure lower mortgage rates, borrowers should aim for higher down payments, excellent credit scores, and low debt-to-income ratios [12] - Focusing on personal finances rather than waiting for rates to drop is recommended for potential buyers [13] Choosing a Mortgage Lender - It is advisable to apply for mortgage preapproval with multiple lenders within a short time frame to ensure accurate comparisons and minimize credit score impact [14] - When comparing lenders, the annual percentage rate (APR) should be considered as it reflects the true cost of borrowing [15] Market Expectations - Economists do not anticipate significant drops in mortgage rates before the end of 2026, with rates remaining stable since mid-October [19]