Mortgage rates continued to trend downward ever so slightly at the start of December.
The U.S. 30-year fixed mortgage rate averaged 6.19% during the week ending on Dec. 4, according to the latest Freddie Mac Primary Mortgage Market Survey. That’s a drop of .04 points from the week prior. The 15-year fixed mortgage rate averaged 5.44%, .07 points lower than the week before.
Most homebuyers who take out mortgages have a 30-year fixed-rate or 15-year fixed-rate term. The mortgage rate will affect how much a homeowner pays monthly and how much they pay over the life of the loan.
Lenders set rates based on a variety of individual and economic factors, including inflation and the rate environment, as well as a borrower’s credit score and debt-to-income ratio. While rates on debt like credit cards and loans move alongside the federal funds rate, mortgage rates are more closely linked to the 10-year treasury yield.
The local and national housing market, government policy and the economy at large also impact rate pricing. In addition, a mortgage borrower’s credit score, income and debt profile will affect the rate they are quoted.
In the last few years, economic uncertainty and a nationwide housing shortage have kept mortgage rates above 6.0%. The U.S. hasn’t seen annual average rates that high since 2008, according to Rocket Mortgage. Rates have stubbornly hovered above this threshold throughout the year, and housing economists predict they will remain above or near 6.0% on average through next year. Realtor.com released its 2026 mortgage outlook on Dec. 2, which forecasted rates averaging 6.3% by the end of 2026.
How to get the best rate
In addition to market conditions and the economy, lenders use the borrower’s financial profile to determine the rate of each mortgage.
While you can’t control the economic environment, you can improve your chances of getting the best rate possible by doing a few things before applying for a mortgage.
Improve your credit score
In a lender’s calculation, the higher your credit score, the more likely you are to pay your bills on time — and vice versa. To account for risk, lenders charge higher mortgage rates to those with lower credit scores: an analysis of data by Experian from January 2025 showed that your rate could vary by more than half a point if you had a 620 credit score versus an 840 credit score.
Save for a larger down payment
Lenders also see borrowers who own more of their home outright as less risky, meaning if you save for a larger down payment, you could get a better rate. You can also save on private mortgage insurance (PMI) if you put more than 20% down.
Pay down your debts
Lenders prefer a low debt-to-income ratio — and charge a higher rate for those with a higher DTI. Paying down debts before you apply for a mortgage could help you get the best possible rate.
Calculate your monthly payment
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