Mortgage Rates Today, Dec 28: 30-Year Refinance Rate Rises by 10 Basis Points

The national average for a 30-year fixed refinance rate has edged up to 6.73% today, December 28th, a small but significant increase of 10 basis points from yesterday’s 6.63%. This bump means that if you're looking to refinance your mortgage, the cost of borrowing might be a touch higher than you hoped. It’s a subtle shift, but in the world of mortgages, even small changes can add up over time, so understanding these movements is key to making smart financial decisions.

Today’s data shows that this upward trend is consistent with the past week, as the rate is now 8 basis points higher than the previous week's average of 6.65%. While it might not sound like a lot, and many people are still in a good position to refinance, it’s a gentle reminder that the market is always in motion.

Mortgage Rates Today, Dec 28: 30-Year Refinance Rate Rises by 10 Basis Points

What Does This Mean for Your Refinance Goals?

This increase in the 30-year fixed refinance rate means that the monthly payment for borrowers looking to spread their mortgage payments over a longer period will be slightly more expensive. For instance, if you have a $300,000 loan, that 10 basis point jump could mean paying an extra $18 every month. Over the span of 30 years, that can really add up to a significant amount more in interest paid. This is precisely why, in my experience, looking at the total cost over the life of the loan is so crucial.

However, it's not all bad news, and opportunity still exists for many homeowners. Let’s break down the current refinance rates:

• 30-year fixed: 6.73% (Up 10 basis points)
• 15-year fixed: 5.84% (Up 19 basis points)
• 5-year ARM: 7.20% (Up 12 basis points)

Notice how the shorter-term options, like the 15-year fixed, are still lower than the 30-year option. While they also saw a rise, they remain attractive for those who want to aggressively pay down their mortgage and minimize the total interest paid. On the flip side,adjustable-rate mortgages (ARMs) are now less appealing, with rates climbing above both fixed-rate choices.

The Ripple Effect of a 10 Basis Point Increase

To really understand the impact, let’s visualize how a seemingly small 0.10% change can affect your wallet. Zillow provided some handy figures that illustrate this clearly:

Monthly Payment Impact of a 10 Basis Point Increase (30-Year Fixed Loan)

Loan Amount	Monthly @ 6.63%	Monthly @ 6.73%	Difference
$200,000	$1,281.47	$1,293.46	$11.99
$300,000	$1,922.21	$1,940.19	$17.98
$400,000	$2,562.95	$2,586.92	$23.97
$500,000	$3,203.68	$3,233.65	$29.97

Even on a $500,000 loan, that extra $30 per month might seem manageable. But let’s do some quick math: $30 per month translates to $360 per year. Over the entire 30-year term of the loan, this could mean paying almost $11,000 more in interest. It’s a stark reminder of why timing the market, or at least understanding when rates are favorable, is so important. This is my advice to clients: always look beyond the monthly payment and consider the long-term financial implications.

Is Refinancing Still a Smart Move?

The question on everyone’s mind is probably: “Should I refinance now?” This is where my experience really comes into play. The answer isn't a simple yes or no; it depends on your individual situation.

Refinancing can still be a fantastic idea if:

• Your current mortgage rate is significantly higher than today’s averages. If you locked in a rate in the 7% or even 8% range a few years ago, moving to a 6.73% rate could still offer substantial savings.
• You want to shorten your loan term. Perhaps you're looking to pay off your mortgage in 15 or 20 years instead of 30. Refinancing to a shorter term, even with a slightly higher rate than you might have hoped for, can build equity much faster and save you a lot of money on interest overall.
• You plan to stay in your home for a considerable time. Refinancing comes with closing costs, just like getting your original mortgage. You need to make sure the savings you achieve over time are greater than these upfront fees. I often advise clients to calculate their “break-even point” – how many months it will take for the monthly savings to cover the closing costs.

However, with rates trending upward, the window for the absolute best deals might be narrowing. It's crucial to weigh the potential savings against the possibility of further increases or, conversely, future dips in rates.

Demand and Market Trends: What’s Driving the Numbers?

Looking at the broader market, we see some interesting trends. Total mortgage application volume dipped recently, with refinance applications specifically seeing a decrease. This might seem counterintuitive given the data, but it’s largely because a huge number of homeowners – around 70% – have mortgages with rates below 5%. For these homeowners, refinancing into a 6.73% rate would mean paying more in interest. Instead, many are turning to home equity lines of credit (HELOCs) or home equity loans if they need cash, preserving their low primary mortgage rate.

Despite the weekly dip, overall refinance demand is still incredibly strong compared to earlier in the year when rates were much higher. This suggests that many borrowers who do have higher-rate mortgages are still actively looking for ways to reduce their costs.

A Glimpse into 2026

What about the future? Major housing authorities like the Mortgage Bankers Association and Fannie Mae are predicting that mortgage rates will likely stay in the 6.0% to 6.5% range for much of 2026. This forecast is influenced by the Federal Reserve's recent rate cuts, though they’ve indicated a potential pause to monitor the economy.

The old “1% rule” – waiting for rates to drop at least 1% below your current one to refinance – might not be the only strategy anymore. If you currently have a rate at 7% or higher, refinancing even to a rate just below 7% could be beneficial, especially if you’ve been wanting to shorten your loan term or cash out equity.

My Takeaway for You

In summary, the national average 30-year fixed refinance rate has nudged up to 6.73%. While this signals that the cost of refinancing for longer terms is slightly increasing, it doesn't mean opportunities have disappeared. For those homeowners with older, higher-interest mortgages, refinancing could still offer significant savings. The key is to do your homework, understand your personal financial goals, and consult with an experienced mortgage professional to see if today’s rates align with your refinance strategy. The market is dynamic, and informed decisions are always the best ones.