Mortgage Rates Today: December 31, 2025 – 30-Year Rates Down, 15-Year Rates Steady

The current average mortgage rate on a 30-year fixed mortgage is 6.15%, according to the Mortgage Research Center. The average rate on a 15-year mortgage is 5.30%, while the average rate on a 30-year jumbo mortgage is 6.37%.

30-Year Mortgage Rates Drop 1.71%

Today’s 30-year mortgage—the most popular mortgage product—is 6.15%, down 1.71% from a week earlier.

The interest rate is just one fee included in your mortgage. You’ll also pay lender fees, which differ from lender to lender. Both interest rate and lender fees are captured in the APR. This week the APR on a 30-year fixed-rate mortgage is 6.18%. Last week, the APR was 6.29%.

Let’s say your home loan is $100,000 and you have a 30-year, fixed-rate mortgage with the current rate of 6.15%, your monthly payment will be about $609, including principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. That’s around $120,045 in total interest over the life of the loan.

15-Year Mortgage Rates Drop 1.70%

Today, the 15-year mortgage rate dropped to 5.3%, lower than it was yesterday. Last week, it was 5.4%.

On a 15-year fixed, the APR is 5.35%. Last week it was 5.44%.

With an interest rate of 5.3%, you would pay $807 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $45,627 in total interest.

Jumbo Mortgage Rates Drop 0.09%

The current average interest rate on a 30-year, fixed-rate jumbo mortgage (a mortgage above 2025’s conforming loan limit of $806,500 in most areas) is 6.37%—0.09% lower than last week.

A 30-year jumbo mortgage at today’s fixed interest rate of 6.37% will cost you $624 per month in principal and interest per $100,000. That adds up to approximately $124,946 in total interest over the life of the loan.

Overview of 2025 Mortgage Rate Trends to Date

After reaching 7.04% in January, the average interest rate for a 30-year fixed mortgage has steadily remained in the mid-to-high 6% range. The 15-year fixed mortgage rate has hovered between the low-6% and mid-to-high 5% range since its January peak of 6.27%.

Rates have trended downward since mid-January 2025, but experts aren’t forecasting further significant decreases in 2025. Rate drops may continue in 2026, especially if the Federal Reserve continues to cut the federal funds rate down.

When Can I Expect Mortgage Rates To Drop?

Mortgage rates are influenced by various economic factors, making it difficult to predict when they will drop.

Mortgage rates follow U.S. Treasury bond yields. When bond yields decrease, mortgage rates generally follow suit.

The Federal Reserve’s decisions and global events also play a key role in shaping mortgage rates. If inflation rises or the economy slows, the Fed may lower its federal funds rate. For example, during the Covid-19 pandemic, the Fed reduced rates, which drove interest rates to record lows.

A significant drop in mortgage rates seems unlikely in the near future. However, they may decline if inflation eases or the economy weakens.

What Affects Mortgage Rates?

The Federal Reserve’s restrictive monetary policy – including its interest rate hikes, which it’s using to restrain inflation – is the primary factor that’s pushing long-term mortgage rates higher. The state of the economy and housing market also affects mortgage rates. As for what interest rate the lender might offer you, this depends on your debt-to-income (DTI) ratio and credit score, both of which indicate your risk as a borrower

Related: Mortgage Rates Forecast And Trends

How To Compare Mortgage Rates

Shop around and talk to various lenders to get a sense of each company’s mortgage loan offerings and services. Don’t go with the first lender quote you receive; instead, compare the best mortgage rate quotes to get a deal. In particular, consider what fees they charge, what fees they’re willing to waive and what closing assistance they might provide. Make sure any special offers or discounts don’t come at the cost of a higher mortgage rate.

Be sure to apply with each lender within a 45-day window. During this window, you can have multiple lenders pull your credit history without additional impact on your credit score

Is This a Good Time To Buy a House?

Mortgage rates remain elevated, and the nation’s housing supply remains limited. The low inventory is preventing house prices from dropping. Meanwhile, the combination of high mortgage rates and appreciated home values will continue to present an obstacle for many prospective homebuyers seeking affordable housing.

How Are Mortgage Rates Determined?

Mortgage interest rates are determined by several factors, including some that borrowers can’t control:

• Federal Reserve. The Fed rate hikes and decreases adjust the federal funds rate, which helps determine the benchmark interest rate that banks lend money at. As a result, mortgage rates tend to move in the same direction with the Fed’s rate decision.
• Bond market. Mortgages are also loosely connected to long-term bond yields as investors look for income-producing assets—specifically, the 10-year U.S. Treasury Bond. Home loan rates tend to increase as bond prices decrease, and vice versa.
• Economic health. Rates can increase during a strong economy when consumer demand is higher and unemployment levels are lower. Anticipate lower rates as the economy weakens and there is less demand for mortgages.
• Inflation. Banks and lenders may increase rates during inflationary periods to slow the rate of inflation. Additionally, inflation makes goods and services more expensive, reducing the dollar’s purchasing power.

While the above factors set the base interest rate for new mortgages, there are several areas that borrowers can focus on to get a lower rate:

• Credit score. Applicants with a credit score of 670 or above tend to have an easier time qualifying for a better interest rate. Typically, most lenders require a minimum score of 620 to qualify for a conventional mortgage.
• Debt-to-income (DTI) ratio. Lenders may issue mortgages to borrowers with a DTI of 50% or less. However, applying with a DTI below 43% is recommended.
• Loan-to-value (LTV) ratio. Conventional home loans charge private mortgage insurance when your LTV exceeds 80% of the appraisal value, meaning you need to put at least 20% down to avoid higher rates. Additionally, FHA mortgage insurance premiums expire after the first 11 years when you put at least 10% down.
• Loan term. Longer-term loans such as a 30-year or 20-year mortgage tend to charge higher rates than a 15-year loan term. However, your monthly payment can be more affordable over a longer term.
• Residence type. Interest rates for a primary residence can be lower than a second home or an investment property. This is because the lender of your primary mortgage receives compensation first in the event of foreclosure.

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