Today’s Mortgage Rates, Dec 25: Rates Decline Offering a Holiday Gift for Buyers

Mortgage rates continue to move with only minor changes this week, offering borrowers a relatively calm environment as the year draws to a close. According to Freddie Mac, the average 30‑year fixed mortgage rate slipped three basis points to 6.18%, while the 15‑year fixed rate edged up three basis points to 5.50%. “The average 30‑year fixed‑rate mortgage decreased further this week,” said Sam Khater, Freddie Mac’s chief economist. “Declining rates offer a timely and welcome gift for aspiring homebuyers.”

Today’s Mortgage Rates, Dec 25: Rates Decline Offering a Holiday Gift for Buyers

A Look at Today's Numbers: Purchase Mortgage Rates

Now, let's break down what the rates from Zillow are looking like for those aiming to purchase a new home as of December 25th, 2025. These are national averages, so your specific rate might vary slightly depending on your credit score, loan-to-value ratio, and the lender you choose.

Mortgage Type	Interest Rate
30-year fixed	6.10%
20-year fixed	6.00%
15-year fixed	5.52%
5/1 ARM	6.26%
7/1 ARM	6.26%
30-year VA	5.62%
15-year VA	5.31%
5/1 VA	5.25%

(Note: ARM stands for Adjustable-Rate Mortgage. VA loans are specifically for veterans and active-duty military personnel.)

As you can see, the familiar workhorses, the 30-year and 15-year fixed-rate mortgages, are the most common choices and are showing steady rates. The fact that the 30-year fixed is just over 6% is a significant improvement from where we were in previous years, and it offers a good balance of affordability and predictability.

Thinking About Refinancing? Here's What's Available

Refinancing can be a smart move for homeowners looking to lower their monthly payments, shorten their loan term, or tap into their home equity. While refinance rates are often a hair higher than purchase rates, the difference can be minimal, and the long-term savings can be substantial.

Here are the national average refinance rates from Zillow for December 25th, 2025:

Refinance Type	Interest Rate
30-year fixed	6.25%
20-year fixed	5.92%
15-year fixed	5.69%
5/1 ARM	6.44%
7/1 ARM	6.43%
30-year VA	5.55%
15-year VA	5.37%
5/1 VA	5.50%

You'll notice that the 30-year fixed refinance rate is 6.25%, which is slightly higher than the purchase rate of 6.10%. This is pretty typical. However, when you look at the 15-year fixed refinance at 5.69%, it's very competitive and can lead to significant interest savings over time compared to keeping an older, higher-rate loan.

What Do These Numbers Mean for You?

Let's translate these percentages into real-world impact, because numbers on a screen are one thing, but how they affect your wallet is what truly matters.

• For New Homebuyers: The current rates offer a relatively calm and predictable market. While rates haven't plummeted, the stability is a welcome gift. It means you can plan your budget with more confidence. Sam Khater, Freddie Mac’s chief economist, hit the nail on the head when he called declining rates a “timely and welcome gift for aspiring homebuyers.” Even small dips can make a big difference when you're looking at a 30-year commitment.
• For Homeowners Looking to Refinance: If you secured a mortgage a few years ago at significantly higher rates, now is definitely a good time to explore refinancing. While the rates today aren't the all-time lows we saw in the past, they are still very attractive compared to many loans from, say, 2022 or earlier. You might be able to shave off a quarter or even half a percentage point, which on a large loan can equal thousands of dollars saved over the life of the loan.
• Fixed vs. Adjustable Rates: Right now, the adjustable-rate mortgages (ARMs), like the 5/1 and 7/1 options, are showing rates similar to or even slightly higher than fixed-rate loans. For most people, especially in a stable rate environment like this, the security of a fixed rate is hard to beat. You know exactly what your principal and interest payment will be for the entire loan term. ARMs can be attractive if you plan to move or refinance before the fixed period ends, but they come with the risk of your payment increasing later.

A Real-World Payment Example

Let's put this into perspective with a $300,000 loan on a 30-year fixed-rate mortgage.

• At 6.25% (Current Refinance Rate): Your estimated monthly principal and interest payment would be around $1,848.
• At 6.10% (Current Purchase Rate): Your estimated monthly principal and interest payment would be around $1,820.

The difference might seem small at first glance – about $28 less per month if you qualify for the purchase rate. But let's zoom out:

• Annual Savings: That's roughly $336 per year.
• 30-Year Lifetime Savings: Over the life of the loan, this could amount to over $10,000 in interest saved! This is why even small rate shifts matter immensely.

Why Does This Calm Market Make a Difference?

I always emphasize that time is your friend in the mortgage process, and this current stability amplifies that.

• Shop Around: When rates are stable, lenders are often more willing to compete on fees and terms. This gives you the power to really shop. Don't just go with the first lender you speak to. Get quotes from at least three to five different lenders (banks, credit unions, online mortgage companies). Small differences in closing costs can add up, and it might be worth negotiating them down.
• The “Lock-In Effect”: We're still seeing a bit of what's called the “lock-in effect.” Many homeowners have mortgages with rates much lower than today's (often below 4%). This makes them hesitant to sell their current home and buy a new one, as their new mortgage payment would likely be higher. This is contributing to lower inventory in some areas. For buyers, this can mean slightly less competition in certain markets, which could translate into more negotiating power.

Market Pulse: What's Driving These Numbers?

So, what's behind these steady mortgage rates as we head into the new year? It's a mix of economic signals and expectations for the future.

• Economic Signals: We've seen some mixed economic data lately. While there's been good news, like strong GDP growth reports, there have also been signs of inflation easing. Strong economic news generally pushes mortgage rates up, while weaker news tends to push them down. The market is trying to balance these competing forces.
• The Federal Reserve and Treasury Yields: While the Federal Reserve has been cutting its benchmark interest rate, mortgage rates tend to follow the 10-year Treasury yield more closely. These cuts were largely anticipated by the market, so we haven't seen mortgage rates fall as dramatically as one might expect.
• Expert Predictions for 2026: Looking ahead to 2026, there's no clear consensus among experts. Some predict rates will hold relatively steady around 6.4%, while others foresee a drop to around 5.9% by the end of the year. The general feeling is that rates will likely stay within a certain range in the immediate future, partly due to shorter trading weeks during the holidays and lower trading volumes.

The Bottom Line for December 25th, 2025

Here’s the snapshot as we celebrate the holidays:

• 30-year fixed purchase mortgage rates are around 6.10%.
• 15-year fixed purchase mortgage rates are near 5.52%.
• 30-year fixed refinance rates are approximately 6.25%.

This period of stability is a fantastic opportunity. Whether you're dreaming of your first home or aiming to improve your current mortgage situation, take advantage of this calm. Do your research, compare what different lenders are offering, and don't hesitate to ask questions. Getting your mortgage financing sorted before potential market shifts in the new year could be one of the smartest decisions you make.