Mortgage Rates Today: 30-Year Fixed Refinance Rate Rises by 3 Basis Points

If you've been eyeing a mortgage refinance, the 30-year fixed rate just nudged up by 3 basis points, reaching 6.70% as of Wednesday, December 3, 2025, according to Zillow. While this might seem like a small sip of change, I want to dive into what this actually means for your wallet, your financial health, and how you can still win in this market.

Mortgage Rates Today, December 3: 30-Year Fixed Refinance Rate Rises by 3 Basis Points

What's Cooking with Mortgage Refinance Rates?

Let's break down the latest figures from Zillow. The 30-year fixed refinance rate is now sitting at 6.70%. This is a slight uptick, a rise of 3 basis points, from its previous position of 6.67%. Now, if you're thinking, “Is that even a blip?” – hold on. Sometimes, these small movements are precursors to bigger shifts, and it's always good to be aware.

Looking at the broader picture, this 6.70% rate is also 1 basis point higher than the average rate we saw just last week, which was 6.69%. As a seasoned observer of these markets, I've seen how even these seemingly tiny changes can compound over time, especially with a 30-year loan.

But it's not all upward movement. Good news for some! The 15-year fixed refinance rate actually saw a welcome decrease. It dropped by a notable 11 basis points, settling at 5.56% from last week's 5.67%. This could be a fantastic opportunity for homeowners who want to pay off their mortgage faster and save on interest, though they might not need the longer repayment period that a 30-year offers.

On the flip side, the 5-year Adjustable-Rate Mortgage (ARM) refinance rate has taken a more significant leap. It’s up by a hefty 34 basis points, moving from 7.24% to 7.58%. This jump signals that lenders are pricing in more risk or expecting interest rates to potentially stay higher for longer, making ARMs less attractive for those seeking immediate stability.

What a 3 Basis Point Increase Really Means for Monthly Payments

So, you see “3 basis points” and your mind might glaze over. But here's where it hits home: your monthly payment. A basis point is just one-hundredth of a percent. So, 3 basis points is 0.03%. On the surface, it sounds minuscule.

Let's consider a hypothetical refinance of $300,000 on a 30-year fixed mortgage.

• At 6.67% (the previous rate): Your estimated monthly principal and interest payment would be around $1,944.
• At 6.70% (the current rate): Your estimated monthly principal and interest payment would be around $1,951.

That's a difference of about $7 per month. Now, $7 might not make or break your budget. However, remember that refinance involves closing costs, which can add up to thousands of dollars. When you're looking at a refinance, especially one with closing costs, that $7 per month difference means it will take a little bit longer for your savings on interest to recoup those upfront expenses. My advice? Always factor in the break-even point, the number of months it will take for your monthly savings to cover your closing costs. Every extra dollar spent on interest upfront extends that break-even period.

Furthermore, this small increase can be a sign. It could mean that lenders are anticipating continued upward pressure on rates, or perhaps they are adjusting their pricing based on economic indicators. For me, it's a clear signal to not drag your feet too much if you've been contemplating a refinance.

Understanding the Impact of Debt-to-Income Ratio on Refinancing

Beyond just the rate itself, your Debt-to-Income (DTI) ratio is a massive factor in whether you'll qualify for a refinance and at what rate. Lenders use your DTI to gauge your ability to manage monthly payments and repay debts. It’s calculated by dividing your total monthly minimum debt payments by your gross monthly income.

• Front-end DTI (or housing ratio): This looks at just your potential new mortgage payment (principal, interest, taxes, and insurance) compared to your gross monthly income.
• Back-end DTI (or total debt ratio): This is the more common metric and includes all your monthly debt obligations – student loans, car payments, credit card minimums, plus your potential new mortgage payment – compared to your gross monthly income.

Generally, the lower your DTI, the more attractive you are to lenders. A DTI of 43% or lower is often considered the benchmark for conventional loans, though some government-backed programs might have slightly higher allowances.

Why this matters for refinancing: If your DTI is high, even a small increase in rates can push your potential new mortgage payment out of reach for lenders' guidelines. Conversely, if you've been diligently paying down debt or seen your income increase since you last borrowed, your DTI might have improved, potentially opening doors to better refinance options – even if rates have seen a minor bump. Before diving into any refinance discussions, I always recommend getting a clear picture of your own DTI. It sets your expectations and targets.

Exploring Government Programs That Support Refinancing

It's not all about conventional loans. The U.S. government offers programs that can be a lifeline for homeowners looking to refinance, especially in challenging rate environments or if they have specific circumstances.

• FHA Streamline Refinance: If you currently have a FHA loan, this program allows you to refinance into a new FHA loan with reduced paperwork and often without an appraisal. It's designed to make refinancing easier and more accessible. Even with current rates, if you can reduce your rate or term, it could be worthwhile.
• VA Streamline Refinance (IRRRL): For eligible veterans and active-duty military, the VA offers a similar streamlined refinance option. This can be a fantastic way to lower your monthly payment or switch from an ARM to a fixed rate.
• HARP (Home Affordable Refinance Program): While HARP has ended, it's a good reminder that programs exist to help underwater homeowners. Keep an eye on any new government initiatives related to housing assistance or relief, as these can pop up during economic shifts.

These programs often have more flexible eligibility requirements than conventional loans, making them crucial options for many. It’s always worth checking if you qualify, as they can sometimes offer rates or terms that aren't available through private lenders.

Strategies to Improve Your Credit Score Before Refinancing

Your credit score is your financial report card, and it plays an enormous role in the mortgage refinance rates you'll be offered. A higher credit score translates to lower interest rates, which means significant savings over the life of your loan. Given the slight uptick in rates, it's even more critical to put your best financial foot forward.

Here are some actionable strategies I always suggest:

• Pay Bills on Time, Every Time: This is the single most important factor. Late payments can significantly damage your score. Set up auto-pay for all your bills.
• Reduce Credit Card Balances: Aim to keep your credit utilization ratio (the amount of credit you're using compared to your total available credit) below 30%, and ideally below 10%. Paying down balances on credit cards can boost your score quickly.
• Don't Close Old Accounts: Even if you don't use them, old credit accounts with a positive payment history show lenders you have experience managing credit over time. Closing them can reduce your average account age and available credit, potentially lowering your score.
• Check Your Credit Reports for Errors: You're entitled to free credit reports from Equifax, Experian, and TransUnion annually. Review them for any inaccuracies. Mistakes can drag down your score, and disputing them can lead to an improvement.
• Avoid New Credit Applications: Opening several new credit accounts in a short period can negatively impact your score due to hard inquiries and the reduction in the average age of your accounts.

I've seen clients improve their scores by 20-50 points in just a few months by focusing on these aspects. That kind of improvement can easily knock a quarter-point or more off your refinance rate, easily offsetting a 3-basis point rise.

The Bottom Line on Today's Rates

While the 30-year fixed refinance rate rising by 3 basis points to 6.70% might sound like a step back, it's just one data point in a dynamic market. It highlights the importance of not delaying decisions too long if you have a clear refinance goal. However, it also emphasizes that locking in your best rate is more attainable when you've got a strong financial profile.

Remember to consider the overall picture: your DTI, your credit score, and the specific refinance programs available to you. Always do the math on your break-even point, and consult with trusted mortgage professionals. My experience tells me that a disciplined approach to your finances, combined with smart shopping, can still lead to excellent refinance outcomes, even when rates are on the move.