Today’s Mortgage Rates, December 4: 30-Year Fixed Rate Drops to 6% Once Again

Well, here we are again, watching mortgage rates dance around that significant 6% mark. As of December 4th, the average 30-year fixed mortgage rate has dipped to 6.00%, according to Zillow. This is a noticeable drop from where we’ve been, and it’s a development that many buyers and homeowners have been eagerly anticipating.

While it’s crucial to remember these are national averages and individual rates can vary, this 6.00% figure is a big psychological win for those looking to buy or refinance, signaling a potential shift in borrowing costs. Let's break down what these numbers mean for you right now and what the experts are predicting for the near future.

Today's Mortgage Rates, December 4: 30-Year Fixed Rate Drops to 6% Once Again

Current Mortgage Rates

Before we dive deeper, let's get a clear picture of the current rates. Zillow's data for December 4th shows the following national averages:

Loan Type	Interest Rate
30‑year fixed	6.00%
20‑year fixed	5.88%
15‑year fixed	5.44%
5/1 ARM	6.14%
7/1 ARM	6.07%
30‑year VA	5.67%
15‑year VA	5.34%
5/1 VA	5.43%

It’s worth noting that ARMs (Adjustable-Rate Mortgages) can offer a lower initial rate, but they come with the risk of the rate increasing after the initial fixed period. VA loans are a fantastic option for our nation's veterans, often featuring competitive rates.

Current Mortgage Refinance Rates

If you're already a homeowner and thinking about refinancing, here's how those rates look:

Loan Type	Interest Rate
30‑year fixed	6.15%
20‑year fixed	6.01%
15‑year fixed	5.64%
5/1 ARM	6.46%
7/1 ARM	6.71%
30‑year VA	5.61%
15‑year VA	5.39%
5/1 VA	5.29%

You might notice that refinance rates are often slightly higher than purchase rates. This isn't unusual, as lenders sometimes view these transactions a bit differently. However, the gap today is quite small, which is definitely something to consider if you're looking to lower your monthly payment.

When Rates Hover Just Under 6%: What This Means for You

That 6.00% mark for a 30-year fixed mortgage isn’t just a number; it’s a beacon. For many months, we saw rates well above 7%, sometimes even pushing 8%. When rates are that high, the monthly payment for a new mortgage can be significantly larger. Think about it: a $300,000 mortgage at 7.5% costs about $2,098 per month (principal and interest), while at 6.00%, that same loan is roughly $1,799. That's a difference of over $300 a month, or nearly $3,600 a year.

This drop to 6.00% makes homeownership more achievable for some buyers who were priced out by higher rates. It also offers a glimmer of hope for affordability. While the housing market still faces challenges, including inventory shortages in many areas, lower interest rates can help offset those higher home prices to some extent.

It's important to also recognize the volatility we've seen. Rates can fluctuate daily based on economic news, inflation reports, and Federal Reserve signals. So while 6.00% is a great spot to land, it’s wise to be prepared for potential minor swings, particularly in the short term.

Looking Ahead: Projections for 2026

While we're focused on today's mortgage rates December 4, it's always smart to have an eye on the future. Realtor.com's recent housing outlook offers some reassuring projections. They anticipate that average 30-year mortgage rates will likely settle around 6.3% throughout 2026.

Now, you might be thinking, “Wait, aren't they going down?” Yes, rates have been moving down recently, but the projection for 6.3% suggests a scenario where economic growth slows down naturally, and the Federal Reserve signals the end of its aggressive interest rate hikes (quantitative tightening). These factors, they believe, will help to balance out some persistent inflationary pressures and the overall increase in government debt.

From my perspective, this outlook suggests a period of relative stability. It implies that we probably won't see a sudden, sharp drop back to the ultra-low rates of a few years ago, but rather a more consistent, manageable rate environment. This can be a good thing for planning. If you're looking to buy a home or refinance, knowing that rates are projected to stay in a certain range can make it easier to make your decisions without feeling like you're racing against constantly shifting tides. It’s about finding a rate that works for your goals within a predictable future.

Refinance Opportunities: Is Now the Time?

With the 30-year fixed purchase rate at 6.00% and the refinance rate at 6.15%, the gap has definitely narrowed. For homeowners who secured a mortgage when rates were significantly higher – say, 7% or 8% – even a refinance rate around 6.15% could still offer substantial savings.

When I advise clients on refinancing, I always look at the “break-even” point. This means calculating how long it will take for the savings from your lower monthly payment to recoup the closing costs of the refinance. If you plan to stay in your home for several years, refinancing even at a rate slightly higher than current purchase rates can be a smart move if your original rate was much higher.

Consider these questions when evaluating a refinance:

• What was your original interest rate? The bigger the difference, the more potential savings.
• What are the closing costs? Get a clear estimate and compare offers.
• How long do you plan to stay in the home? This is crucial for calculating your break-even point.
• Are you tapping into your home's equity? Sometimes a refinance is also a cash-out opportunity, which can be useful for home improvements or consolidating debt.

Given these rates, if you have a mortgage well above 7%, it's definitely worth exploring refinance options. The smaller spread between purchase and refinance rates today suggests that lenders are competitively pricing these options.

Final Thoughts on Today's Mortgage Rates

As we wrap up December 4th, the mortgage market is showing signs of stabilization, with key rates hovering around the significant 6% benchmark. For buyers, this is a welcome development, improving affordability compared to recent months. For homeowners, the shrinking difference between purchase and refinance rates opens up potential opportunities to lower their monthly payments.

The projections for 2026 indicate a future of relative rate stability, which is good news for long-term planning. While no one can perfectly predict the future, understanding these trends helps us navigate the market with more confidence. My advice remains consistent: stay informed, and when you're ready to make a move, work with trusted lenders and advisors to find the best option for your unique financial situation.