Today’s Mortgage Rates, Dec 30: 30-Year Fixed Rate Drops Below 6% Again

As December 30, 2025, draws to a close, I’ve got some genuinely exciting news for anyone thinking about buying a home or looking to save money on their existing mortgage: mortgage rates have officially dipped below the 6% mark. According to the latest data from Zillow, the average rate for a 30-year fixed mortgage is now sitting at a cool 5.99%. This is a big deal. After what felt like an eternity of rates being high, this drop below 6% marks a significant turning point, offering a renewed sense of possibility for homeownership and refinancing as we head into 2026.

But what does this really mean for you, and should you be making moves right now? Let’s dig into the details.

Today’s Mortgage Rates, Dec 30: Below 6% Again – What It Means for You

Where Do Mortgage Rates Stand Today?

Here’s a clear look at the numbers from Zillow for purchase mortgages on this December 30th:

Loan Type	Interest Rate
30-year fixed	5.99%
20-year fixed	5.95%
15-year fixed	5.49%
5/1 ARM	6.10%
7/1 ARM	6.08%
30-year VA	5.56%
15-year VA	5.09%
5/1 VA	5.19%

For those looking to refinance an existing mortgage, the rates are a tiny bit higher, which is typical as lenders assess different risk factors for refinancing versus new purchases.

Loan Type	Interest Rate
30-year fixed refinance	6.10%
20-year fixed refinance	5.92%
15-year fixed refinance	5.59%
5/1 ARM refinance	6.31%
7/1 ARM refinance	6.36%
30-year VA refinance	5.62%
15-year VA refinance	5.41%
5/1 VA refinance	5.47%

It's also worth noting that some lenders are already offering rates as low as 5.5% for a 30-year fixed loan to borrowers with excellent credit and solid financials. This just goes to show that while these averages are a great guide, your personal situation—your credit score, how much you put down, and your loan amount—can mean you get an even better rate.

Why Are Rates Dropping? The Story Behind the Numbers

This drop below 6% isn’t just a random event; it’s the result of several economic forces aligning nicely throughout 2025:

• Inflation is Cooling Down: Remember how worried we were about prices going up so fast? Well, the latest news on inflation is much better, getting closer to the 2% target that the Federal Reserve likes to see. This gives the Fed more confidence.
• The Fed is Shifting Gears: The Federal Reserve, which influences interest rates indirectly, held things steady for a good part of 2025 but has now hinted at possible rate cuts early in 2026. Mortgage rates tend to follow the yields on 10-year Treasury bonds, which have been dropping as investors anticipate these Fed actions.
• Homebuyers are Catching a Break: For the last couple of years, high rates made buying tough. Plus, many homeowners locked in super low rates and didn't want to move. This has kept demand from getting too crazy, even as more homes become available.
• Global Uncertainty is a Factor: Things happening in other countries, like slower growth and global tensions, often lead investors to put their money into safer places, like U.S. Treasury bonds. This demand for bonds pushes their yields down, which in turn helps push mortgage rates lower.

What This Means for You If You're Buying a Home

For anyone dreaming of homeownership, a rate below 6% is more than just a nice number—it makes a real difference in your monthly payment.

Imagine this: If you're taking out a $400,000 loan, going from a 6.5% rate down to 5.99% could save you over $130 every single month. Over 30 years, that adds up to more than $47,000! That’s a significant amount of money that can make buying a home achievable for people who were on the fence.

Plus, with home price increases slowing down nationwide (Zillow noted only about 2.1% growth nationally in the last quarter of 2025), we’re seeing a more balanced market. That means lower rates combined with more stable prices create one of the best environments for buyers we’ve seen since 2021.

My advice for buyers:

• If you're thinking of buying, get pre-approved now, especially while rates are favorable.
• Ask your lender about a “float-down” option on your rate lock. This means if rates drop even further before you close, you might be able to get the lower rate.
• If you qualify, don't forget about VA or FHA loans. The 15-year VA rate at 5.09% is incredibly attractive.

Thinking About Refinancing? Here's What to Consider

For current homeowners, the situation is a bit more nuanced. While refinance rates are still slightly higher than purchase rates, that gap is closing.

If you have a mortgage from 2022, 2023, or early 2024 and your rate is 6.5% or higher, refinancing into today’s rates could save you a good chunk of money—as long as you plan to stay in your home long enough to make back the costs of refinancing (which are usually a few percent of the loan amount and take about 2–4 years to recoup).

However, if your current rate is already below 5.5%, refinancing probably isn’t worth it. The only exceptions might be if you’re looking to do a cash-out refinance to pay for home improvements or pay off debt, or if you’re switching from a variable-rate mortgage (ARM) to a fixed rate for peace of mind.

A special note for VA loan holders: If you have an older VA loan with a higher interest rate, now is a fantastic time to look into refinancing. The 15-year VA refinance rate at 5.41% could be a powerful way to pay off your home faster and save a lot on interest over the life of the loan.

Looking at the Bigger Picture: A Market Ready for Change

The fact that rates are dipping below 6% might just signal the end of the period of very high mortgage rates that we saw from 2022 to 2024. Some financial experts are now predicting that rates could continue to trend down toward 5.25%–5.5% by the middle of 2026, assuming the economy remains stable and inflation stays in check.

However, it’s important to remember that things can change. Economic news, job market shifts, or international events could still cause fluctuations. So, while this is a great trend, timing your decisions carefully is still important.

My Final Take: Be Smart, Not Hasty

These sub-6% rates are genuinely good news and should bring a smile to many faces—but they aren’t a reason to make a rushed decision without thinking it through.

• For Buyers: This is your chance to shine. If you’ve been waiting, now is the time to really push forward with your home search. Just remember to stick to your budget. Don't feel pressured to overspend just because rates have improved.
• For Homeowners: Run the numbers on refinancing. Even a small drop of 0.3% or 0.5% can be worth it if you’re extending your loan or wisely using cash from a refinance.
• For Investors: Lower borrowing costs can definitely help the cash flow for rental properties. But with home prices still high in many popular areas, focus on the fundamentals: how much rent you can get, how often the property is rented, and the potential for long-term value increase.

As 2025 wraps up, the housing market is entering an exciting new chapter. It’s a chapter that’s less about panic and more about smart opportunities. Rates below 6% won’t magically fix everything, but they do bring back a much-needed sense of balance and hope. And in a market that's been hungry for both, that's something to be truly thankful for.