Mortgage Rates Today, Dec 26: 30-Year Refinance Rate Rises by 6 Basis Points

For those of you thinking about refinancing your mortgage, here's the key takeaway for today, December 26th: the national average 30-year fixed refinance rate has seen a slight nudge upwards, now sitting at 6.71%. This is a modest increase of 6 basis points from last week, indicating a period of continued stability, albeit with a gentle upward lean.

Mortgage Rates Today, Dec 26: 30-Year Refinance Rate Rises by 6 Basis Points

What Are Current Refinance Rates?

Let's break down the numbers, as reported by Zillow, so you have a clear picture of where things stand today, Friday, December 26, 2025:

• 30-Year Fixed Refinance Rate: This is the big one for most homeowners, offering predictability over the long haul. The current national average is 6.71%. As I mentioned, this is a small bump up by 6 basis points (that’s 0.06%) from last week’s 6.65%. While it's not a dramatic jump, it’s worth noting if you’ve been on the fence.
• 15-Year Fixed Refinance Rate: For those who want to pay off their mortgage faster and save on total interest, the 15-year fixed rate remains a solid option. It’s holding firm at 5.69%. This is a fantastic rate for those who can manage the higher monthly payments.
• 5-Year Adjustable-Rate Mortgage (ARM) Refinance Rate: ARMs can be a bit more complex. The current national average for a 5-year ARM is 7.22%. While this looks a bit higher than the fixed rates, it can be appealing for individuals who plan to move or refinance again within that 5-year window, or who have a strong feeling that rates will drop significantly before their rate adjusts.

Market Snapshot: A Quick Glance

To make it super easy to digest, here’s the data at a glance:

Loan Type	Current Rate	Change from Last Week
30-Year Fixed	6.71%	Up 0.06%
15-Year Fixed	5.69%	Stable
5-Year ARM	7.22%	Stable
Last Updated	Dec 26, 2025

Decoding the Data: Expert Insights

Now, what does all this mean in plain English? This steady, slightly rising trend in refinance rates really reinforces the idea that we're operating in a climate where interest rates are expected to stay elevated for a while. For us homeowners, this has a few implications:

• Securing Stability: If you're thinking about refinancing, and you’re concerned about future rate hikes, locking in the current 6.71% on a 30-year fixed rate could provide you with peace of mind. Your monthly payments will be predictable, shielding you from any potential increases down the line.
• The Appeal of Shorter Terms: The 15-year fixed rate at 5.69% continues to be a shining star for those looking to be mortgage-free sooner. The savings on total interest paid over the life of the loan can be substantial, but you absolutely need to be comfortable with a higher monthly payment.
• ARMs: A Calculated Risk: The 5-year ARM at 7.22% is higher than fixed options. While it might seem appealing if you’re a short-term homeowner, remember that after the initial 5 years, your rate will change. With rates already above 7%, the possibility of them going even higher needs careful consideration. It’s a gamble, and you need to be prepared for the consequences if they do.
• Timing is Everything (But Don't Wait Forever): The Federal Reserve has been pretty clear that they’re in no rush to slash interest rates. This tells me that we shouldn't expect dramatic drops in refinance rates anytime soon. The best time to refinance is often when it makes sense for your personal financial situation, not just when you hope the market will perform a miracle.

For Homebuyers vs. Current Owners: What’s the Story?

The current rate environment generally affects two main groups differently:

• For Homebuyers: Affordability is still a significant hurdle. Rates are a long way from the incredibly low 3-4% we saw a few years ago. This means prospective buyers need to be very realistic about their budgets. Monthly payments will be higher than what many have become accustomed to. Locking in a fixed rate now, even at 6.71%, can offer a sense of security for the long term, even if rates dip slightly in the future.
• For Current Owners:
  • If your current mortgage rate is significantly lower (think pre-2022 levels), refinancing now probably won't make financial sense. You'd be trading a great rate for a higher one, and that’s rarely a good deal.
  • However, if you got your mortgage recently at a rate close to today’s market, or if you're looking to do a cash-out refinance to tap into your home equity, it’s a decision that needs a careful cost-benefit analysis. You’ll be borrowing at a higher rate, so weigh that against your immediate financial needs.

Looking Ahead: My Thoughts on 2026

When I peer into my crystal ball (okay, it’s more like digesting analyst reports), the consensus is that we'll likely see refinance rates remain at these elevated levels through at least the first half of 2026. Modest dips are possible, especially if inflation continues to cool and the Fed starts easing lending policies. However, a return to those ultra-low 3-4% rates? That seems highly improbable anytime in the foreseeable future. My best guess is that we'll be looking at a range closer to 6-7% for 30-year fixed loans, with those ARMs being more volatile.

For homeowners, this means making refinance decisions will increasingly be about your individual circumstances and financial goals, rather than trying to time the market for a big drop. Both buyers and existing owners should get comfortable with the idea that we're in a sustained higher-rate environment. Smart financial planning and a clear understanding of your own needs will be your best guides.