Today’s Mortgage Rates, Dec 12: 30-Year Fixed Rate Has Dropped Noticeably From Last Year

As of December 12, 2025, mortgage rates are sitting comfortably near their lowest points for the year, presenting a truly attractive picture for anyone looking to buy a home or refinance an existing mortgage. The national average for a 30-year fixed mortgage rate is hovering around 6.22%, a noticeable drop from where we were just twelve months ago. This is excellent news for many, as it means securing a home loan is more affordable than it has been for a good chunk of 2025.

Right now, it feels like a welcome breath of fresh air for borrowers. We've navigated through periods of rapidly rising rates, and seeing them stabilize and even dip slightly is a significant development. It’s not just about the headline numbers; it's about what this means for your monthly payments and your overall financial goals.

Today's Mortgage Rates, Dec 12: 30-Year Fixed Rate Has Dropped Noticeably From Last Year

Where Do Mortgage Rates Stand Today?

Let's start with the data from Freddie Mac, a major player in the housing finance system. They regularly survey lenders across the country.

Freddie Mac's Weekly Mortgage Rate Survey (Data as of December 12, 2025)

Loan Type	Current Rate	Rate a Year Ago
30-Year Fixed	6.22%	6.60%
15-Year Fixed	5.54%	5.84%

As you can see, both the popular 30-year fixed and the shorter-term 15-year fixed rates are performing significantly better than they were this time last year. This is a key indicator that the market is offering more favorable terms for borrowers.

Now, let's look at the Zillow data, which often provides a slightly different perspective and includes a wider variety of loan types.

Current Mortgage Rates (National Averages, December 12, 2025)

Loan Type	Current Rate
30-Year Fixed	6.06%
20-Year Fixed	5.98%
15-Year Fixed	5.49%
5/1 ARM	6.23%
7/1 ARM	6.37%
30-Year VA	5.54%
15-Year VA	5.19%
5/1 VA	5.40%

Note: These averages are rounded, and individual offers will vary.

What This Means for You: Homebuyers and Homeowners

So, what’s the big deal about these numbers? It boils down to opportunity.

• For Homebuyers: If you’re in the market to purchase a new home, these rates mean that your purchasing power is likely greater than it was a few months ago. A lower interest rate can translate into a significantly smaller monthly payment or allow you to afford a slightly more expensive home without stretching your budget too thin. The 30-year fixed rate is still a favorite for its predictability – your principal and interest payment stays the same for the entire life of the loan. This offers a sense of security, especially in uncertain economic times.
• For Homeowners Looking to Refinance: Many homeowners who locked in higher rates in previous years might be wondering if it's time to refinance. The Zillow refinance table shows rates that are also very competitive. Refinancing can allow you to lower your monthly payment, shorten your loan term (and pay off your home faster), or even tap into your home's equity for other needs. It's always worth getting quotes to see if refinancing makes financial sense for your situation.
• Comparing Loan Types:
  • Fixed-Rate Mortgages: As you can see, both 15-year and 30-year fixed rates are attractive. The 15-year fixed typically comes with a lower interest rate than the 30-year, but your monthly payments will be higher because you're paying it off in half the time. It's a great option if you can afford the higher payments and want to build equity faster and pay less interest over the life of the loan.
  • Adjustable-Rate Mortgages (ARMs): Currently, ARMs like the 5/1 ARM and 7/1 ARM are seeing rates that are a bit higher than some fixed options. ARMs offer a lower introductory rate for a set period (e.g., 5 or 7 years), after which the rate adjusts based on market conditions. While they can be appealing if you plan to sell or refinance before the adjustment period, the current environment makes fixed rates look more appealing for long-term stability.
  • VA Loans: For eligible veterans and active-duty military members, VA loans continue to be a fantastic option. They offer rates that are often lower than conventional loans, as seen in the Zillow data for 30-year VA and 15-year VA loans. These loans also typically come with no private mortgage insurance, which can be a significant saving.

The Bigger Picture: Why Are Rates Here?

Understanding why rates are where they are can help you make more informed decisions. This past week, the Federal Reserve made another move, cutting its benchmark federal funds rate by 0.25% on December 10th. This was their third such cut this year.

Now, sometimes people think the Fed directly controls mortgage rates, but that’s not quite how it works. Mortgage rates are more closely tied to the 10-year Treasury yield. Think of it this way: when investors are confident about the economy, they tend to invest more in things like Treasury bonds, which pushes their yields down. Conversely, when they're less confident, they might pull back, and yields can rise.

The market had largely anticipated this Fed rate cut, meaning the move didn't cause a huge shock. Instead, the mortgage market had already adjusted based on that expectation. What we're seeing now is a reflection of broader economic sentiment and inflation expectations, rather than just the Fed's latest action.

It's also worth noting that the current rates are a far cry from the highs we saw earlier in 2025 (over 7%) and especially the peak we experienced in October 2023 (over 8%). The year-to-date average for the 30-year fixed is around 6.62%, so we are definitely running below that.

The Affordability Puzzle

While lower mortgage rates are a huge positive for affordability, it's not the whole story. Home prices, unfortunately, have remained stubbornly high in many areas due to a shortage of homes for sale. This means that even with cheaper financing, the sticker price of a home can still be a major hurdle for many aspiring buyers. The combination of these factors has led to the payment-to-income ratio (how much of your income goes towards your mortgage payment) reaching its lowest point since early 2023. This is a good sign, as it suggests housing is becoming slightly more manageable for the average earner.

What's Next? My Take on the Forecast

Looking ahead, most experts I follow believe that mortgage rates will likely stay within a relatively tight range for the rest of December. We're probably looking at rates in the low to mid-6% area for the 30-year fixed.

Here’s what some industry leaders are predicting for the fourth quarter of 2025:

Forecasted Mortgage Rates (Q4 2025)

Housing Authority	30-Year Mortgage Rate Forecast (Q4 2025)
Wells Fargo	6.25%
Fannie Mae	6.30%
Mortgage Bankers Assoc.	6.30%

These forecasts suggest a period of stability, with potential for minor bumps up or down based on incoming economic data. Key reports to watch will be inflation figures and job market statistics. If inflation cools more than expected or the job market shows signs of weakening, rates could tick down. If inflation proves stubborn or the economy stays very strong, we might see slight upward pressure.

For now, though, if you've been thinking about buying or refinancing, today's mortgage rates on December 12, 2025, present a compelling opportunity. It's a good time to get pre-approved, talk to lenders, and explore your options.