Core Insights - Mortgage rates are currently stable, with the average 30-year fixed rate at 5.97% and the 15-year fixed rate at 5.42% [1][15] - Economists do not anticipate significant drops in mortgage rates before the end of 2026, despite recent cuts to the federal funds rate [17] - Mortgage rates have generally decreased over the past couple of months, remaining about half a point lower than a year ago [18] Current Mortgage Rates - The national average rates for various mortgage types are as follows: - 30-year fixed: 5.97% - 20-year fixed: 5.95% - 15-year fixed: 5.42% - 5/1 ARM: 5.83% - 7/1 ARM: 5.97% - 30-year VA: 5.42% - 15-year VA: 4.99% - 5/1 VA: 5.12% [4] Mortgage Refinance Rates - Current mortgage refinance rates are typically higher than purchase rates, although this is not always the case [3] - The national averages for refinance rates are also rounded to the nearest hundredth, similar to purchase rates [3] Mortgage Types and Their Characteristics - A 30-year fixed mortgage offers lower and predictable monthly payments, but comes with higher interest costs over the loan's life [7][9] - A 15-year fixed mortgage has higher monthly payments but lower interest rates, allowing homeowners to pay off their mortgage sooner and save on interest [10][11] - Adjustable-rate mortgages (ARMs) offer lower initial rates but can lead to unpredictable payments after the introductory period [12][13] FAQs on Mortgage Rates - The current national average for a 30-year mortgage is 5.97%, but rates can vary based on location [15] - To secure the lowest refinance rate, improving credit scores and lowering debt-to-income ratios are recommended strategies [19]
Mortgage and refinance interest rates today, December 31: Down to a new 2025 low