Today’s Mortgage Rates, December 5: 30-Year Fixed Rate Goes Down Below 6%

As we head into the busy holiday season on December 5th, I've got some encouraging news for anyone looking to buy a home or refinance their current mortgage: today's mortgage rates are showing a welcome dip. Specifically, national averages are currently sitting about a half-point lower than they were at this same time last year, creating a more welcoming environment for borrowers. This is a significant shift, and understanding where we stand today can help you make smarter financial decisions.

Today's Mortgage Rates, December 5: 30-Year Fixed Rate Goes Down Below 6%

It’s exciting to see this downward trend, especially after the hustle and bustle of the Thanksgiving holiday. As Sam Khater, Freddie Mac’s chief economist, pointed out, rates have been decreasing for two weeks straight. This kind of movement can make a real difference when you're talking about the largest purchase most of us will ever make – a home. Let’s dive into the nitty-gritty of what these numbers mean for you right now.

The Latest Mortgage Rate Snapshot

To give you the clearest picture, I've pulled data from a couple of respected sources.

First, let's look at the national averages reported by Freddie Mac for interest this week. Freddie Mac is a go-to for reliable data in the mortgage industry, and their insights are always valuable.

• 30-year fixed mortgage: Averaging 6.19%
• 15-year fixed mortgage: Averaging 5.44%

Now, let's compare that to a year ago:

• 30-year fixed (last year): Averaged 6.69%
• 15-year fixed (last year): Averaged 5.96%

As you can see, that half-point decrease is real and tangible. It translates to real savings over the life of a loan.

But what about today's rates, right now? For that, I’m looking at the latest data from Zillow, which often provides a more immediate pulse on the market.

Current Rates for Purchasing a Home (as of December 5th):

Loan Type	Interest Rate
30-year fixed	5.97%
20-year fixed	5.91%
15-year fixed	5.41%
5/1 ARM	6.02%
7/1 ARM	6.13%
30-year VA	5.57%
15-year VA	5.30%
5/1 VA	5.39%

Remember, these are national averages and rounded. Your specific rate will depend on your credit score, down payment, and the lender you choose.

Current Rates for Refinancing a Home (as of December 5th):

Loan Type	Interest Rate
30-year fixed	6.13%
20-year fixed	6.22%
15-year fixed	5.56%
5/1 ARM	6.29%
7/1 ARM	6.48%
30-year VA	5.50%
15-year VA	5.13%
5/1 VA	5.14%

An interesting thing to note here is the narrowing gap between purchase and refinance rates. This often signals a healthier market where homeowners might be more inclined to consider refinancing if they can get a better deal.

What This Means for You: Buyers and Homeowners

So, what does this half-point drop really mean in practice?

• For New Buyers: Lower rates mean your monthly mortgage payment is lower. This can open doors to homeownership for those who were on the fence, or it might allow you to afford a bit more house than you could a year ago. It can be the difference between renting a smaller place and owning a modest starter home.
• For Homeowners Looking to Refinance: If you have an existing mortgage, especially one with a higher interest rate, these lower numbers could make refinancing a smart move. You might be able to lower your monthly payments, shorten your loan term, or even tap into your home’s equity for other needs. The closer refinance rates get to purchase rates, the more attractive it becomes.
• A More Stable Outlook: Looking ahead, there’s a sense of cautious optimism. While nobody has a crystal ball, the stability we're seeing, combined with these slightly lower rates, could encourage more people to enter the housing market in the coming year.

The Year-Over-Year Story: Half a Point Matters

Let's put that half-point drop into perspective. A year ago, the national average for a 30-year fixed mortgage was around 6.69%. Today, it’s 6.19%. That might sound small – just a few tenths of a percent. But on a $300,000 mortgage, over 30 years, that difference can add up to tens of thousands of dollars in savings.

• Monthly Payment Example (30-year fixed on $300,000 loan):
  • At 6.69%: Approximately $1,940 per month (principal & interest)
  • At 6.19%: Approximately $1,842 per month (principal & interest)

That's a difference of almost $100 per month, or around $12,000 over 10 years! It’s these kinds of figures that highlight why watching mortgage rate trends is so important. The 15-year fixed also tells a similar story, dropping from 5.96% to 5.44%.

Looking Ahead: What’s Driving Rates and What to Expect

The big question on everyone’s mind is: where are rates headed? It’s a complex equation, influenced by a lot of moving parts.

As an observer of this market, I can tell you that the Federal Reserve plays a significant role. They’ve been cutting their key interest rate, and economists widely expect another cut before the year is out. However, it's crucial to remember that mortgage rates don't always follow the Fed's moves immediately or perfectly. They are more closely tied to the 10-year Treasury yield. When that yield goes down, mortgage rates often follow.

Other important factors include:

• Inflation: While it’s cooling down, inflation is still a bit higher than the Fed’s ideal 2% target. If inflation continues to recede, it could put further downward pressure on mortgage rates.
• The Labor Market: We're seeing signs of the job market cooling off, which is generally good for keeping inflation in check and potentially lowering rates.
• Housing Supply and Demand: An increase in available homes for sale in 2026, coupled with potentially easing mortgage rates, could lead to a more balanced market. This is good news for buyers who have faced intense competition.

Forecasts for 2026:

Experts are weighing in with predictions for the coming year. While rates aren’t expected to plummet back to the historic lows of 2020-2021, the general consensus points towards a continued, albeit gradual, downward trend.

• Realtor.com suggests we’ll see mortgage rates averaging around 6.3% for all of 2026.
• Fannie Mae has a slightly more optimistic outlook, predicting rates could start at 6.2% in early 2026 and dip to 5.9% by the year's end.
• The Mortgage Bankers Association (MBA) anticipates rates to average around 6.4% in late 2025 and stay relatively stable into early 2026.

From my perspective, these forecasts suggest that while we’re unlikely to see a dramatic return to ultra-low rates, the market is moving in a direction that should make homeownership more accessible and refinancing more appealing. It’s a sign of a maturing market, moving away from the extreme conditions of the past few years.

Making a Move Today

If you’ve been waiting for a sign that mortgage rates are becoming more favorable, December 5th, 2025, could be that signal. The current rates, and the year-over-year decrease, offer a tangible benefit.

My advice? Don't just watch the numbers. If you're considering buying or refinancing, now is the time to talk to a trusted mortgage lender. Get pre-approved, understand your options, and see how these current rates can work for your financial goals. Locking in a lower rate today, even if rates tick down slightly more later, can be a shrewd financial move.