Today’s Mortgage Rates, Dec 8: Rates Rise Modestly Ahead of Fed Meeting

If you're thinking about buying a home or refinancing, you've likely been keeping a close eye on today's mortgage rates for December 8th. And you'd be right to do so – the numbers have nudged up a bit this week. According to Zillow, the average 30-year fixed mortgage rate is now sitting at 6.10%, a small increase of 13 basis points. The 15-year fixed rate also saw a slight rise, climbing 14 basis points to 5.55%. This uptick comes at a particularly interesting time, right on the heels of a significant policy decision from the Federal Reserve.

Now, I know what many of you might be thinking: “The Fed is going to cut rates, shouldn't mortgage rates go down?” That's a perfectly logical assumption, and sometimes it plays out that way. However, in the world of mortgage rates, it's rarely that simple.

Today's Mortgage Rates, Dec 8: Rates Rise Modestly Ahead of Fed Meeting

Why Mortgage Rates Don't Always Follow the Fed's Lead

As a seasoned observer of the housing market, I've seen this play out many times. Mortgage rates, while influenced by the Federal Reserve, aren't directly controlled by their decisions. They are far more closely tied to what's happening in the bond market, specifically the yields on 10-year Treasury notes.

Think of it this way: when investors are confident about the economy and expect inflation to stay in check, they're generally willing to accept lower returns on bonds, which can push mortgage rates down. But if there are signs of inflation lingering or economic uncertainty, those same investors demand higher yields, and that directly translates to higher mortgage rates for us.

The Federal Reserve’s actions, like cutting the federal funds rate (which they are expected to do for the third time in 2025), are important. However, the market often anticipates these moves. This means that by the time the official announcement is made, lenders have already adjusted their rates based on those expectations. It's like a rumor spreading through town – by the time the mayor officially confirms it, everyone already knows.

Here are a few key reasons why mortgage rates don't always drop in sync with Fed rate cuts:

• Bond Market Dynamics: As I mentioned, mortgage rates are heavily influenced by 10-year Treasury yields. These yields don't always move lower just because the Fed cuts its benchmark rate. Other global economic factors and investor sentiment play a huge role.
• Investor Expectations: If investors believe inflation risks are still present, they'll demand higher yields on longer-term investments, keeping mortgage rates elevated even if short-term rates are falling.
• Lag Effect: Even when the economic conditions are right for rates to fall, it can take time – sometimes weeks or even months – for those changes to fully filter through to the rates offered by individual lenders.

The Federal Reserve's Next Move: What to Watch For

The big event everyone's buzzing about is the Federal Reserve's upcoming policy announcement this Wednesday. Many experts, and indeed the market itself, are anticipating another 25-basis-point (0.25%) cut to the federal funds rate. This would be the third reduction of 2025, signaling a continued effort to stimulate the economy.

While this anticipated cut has likely been “priced in” by lenders as much as possible, the real impact on mortgage rates will come from the guidance the Fed provides about its future plans.

• If the Fed signals a more aggressive path of rate cuts for 2026, meaning they plan to lower rates more frequently or by larger amounts, this could provide some breathing room and potentially push mortgage rates lower in the coming weeks and months.
• However, if Fed Chair Jerome Powell adopts a more cautious tone (often called “hawkish”), suggesting a pause in future cuts or a slower pace, mortgage rates might hold steady or even tick up despite the current reduction. This would signal that the Fed is still concerned about inflation or economic stability.

Personally, I'm watching very closely to see how the language used by the Fed reflects their confidence in the progress on inflation. Even a small hint of concern can make mortgage rates pause or even reverse, no matter what the immediate rate cut suggests.

Today's Mortgage Rates: A Snapshot (According to Zillow)

Here's a breakdown of the average rates as of December 8th, based on Zillow's data. Remember, these are national averages, and your individual experience might vary depending on your credit score, loan-to-value ratio, and the specific lender you choose.

Loan Type	Average Rate
30-year fixed	6.10%
20-year fixed	5.97%
15-year fixed	5.55%
5/1 ARM	6.45%
7/1 ARM	6.38%
30-year VA	5.56%
15-year VA	5.22%
5/1 VA	5.40%

Refinancing Rates: Still an Option?

For those looking to refinance their existing mortgage, the picture is quite similar. Rates have generally trended downwards throughout 2025, reaching some of their lowest points in recent weeks, but the current uptick means it's more important than ever to compare offers.

Here are the average refinance rates based on Zillow data:

Loan Type	Average Rate
30-year fixed	6.15%
20-year fixed	6.09%
15-year fixed	5.63%
5/1 ARM	6.43%
7/1 ARM	6.69%
30-year VA	5.62%
15-year VA	5.47%
5/1 VA	5.37%

Note: These are national averages for refinance loans, rounded to the nearest hundredth. Individual lender offers may vary.

What This Means for You: Borrower Takeaways

So, what should you do with this information? My advice is to stay informed and be proactive.

• Shop Around, Always: This is the golden rule of mortgages. Don't just go with the first lender you talk to. Get quotes from multiple banks, credit unions, and mortgage brokers. Even a small difference in the interest rate can save you thousands of dollars over the life of your loan.
• Don't Get Too Caught Up in Just the Fed: While the Fed's decisions are a bellwether, remember that mortgage rates are more sensitive to the bond market and overall economic sentiment. Keep an eye on those 10-year Treasury yields and reports on inflation.
• Consider Your Timing: Given the current volatility, if you've found a rate you're comfortable with and that fits your budget, it might be wise to lock it in. Waiting for rates to drop further is always a gamble, and sometimes, locking in a rate now provides more peace of mind than chasing an uncertain future decrease.
• VA Loan Advantage: If you're a veteran or active-duty service member, you're still in a strong position. VA loan programs continue to offer excellent rates, often lower than the general market averages, as you can see from the data above.

The Outlook for December: Looking ahead, experts are predicting that mortgage rates will likely remain in a relatively tight range in the low 6% area throughout December. The anticipated Fed cut should help keep things stable or perhaps nudge them slightly lower. However, the real story will be in Powell's commentary. If he signals continued easing, we might see a continued downward trend. But if he sounds more reserved, expect rates to stay put or even rise.

For now, today’s mortgage rates suggest a moment of watchful waiting. It’s a good time to do your homework, compare your options, and make a decision that feels right for your financial future.