Mortgage Interest Rates Update – December 15, 2025

Mortgage interest rates are reflecting a downward trend as we approach the end of 2025. Following the final Federal Reserve meeting of the year, held on December 10, which included the last Fed rate cut for the year, borrowers are encouraged to reassess their mortgage options.

Impact of the Federal Reserve’s Rate Cut

The recent Fed rate cuts, totaling three in the last four months of the year, have started to influence the lending landscape positively. While rates have risen significantly in recent years, the current atmosphere suggests that now might be an opportune moment for borrowers looking into purchasing a home or refinancing existing loans.

Current Mortgage Rates

As of December 15, 2025, the average mortgage rates are as follows:

30-Year Mortgage Rate

The average rate for a 30-year mortgage stands at 6.12%, a slight increase from 5.99% earlier in the month. This uptick follows the formal rate cut announcement, a common pattern as lenders often adjust their pricing in anticipation of such decisions.

15-Year Mortgage Rate

For a 15-year term, the average interest rate is 5.50%, also reflecting a small rise but remaining competitive for buyers willing to manage higher monthly payments for lower long-term costs.

Borrowers are advised to shop around, as individual lenders may offer varying rates in response to the Fed’s actions.

Refinancing Options

The refinancing landscape has also seen noteworthy changes:

30-Year Refinance Rate

The average refinance rate for a 30-year mortgage has decreased to 6.65% from 6.72%.

15-Year Refinance Rate

Similarly, the 15-year refinance option has decreased from 5.70% to 5.67%.

While these rates are not as favorable as those from previous years when interest rates were significantly lower, they present potential savings for homeowners who secured loans during the higher rate environment of recent years.

Conclusion

As of December 15, 2025, the mortgage landscape features an average rate of 6.12% for a 30-year mortgage and 5.50% for a 15-year mortgage, with refinance rates seeing modest declines as well. With the Fed’s rate cut being absorbed by the market, they may currently represent some of the most competitive options available.

Homeowners and potential buyers should consider locking in these rates, as future economic data may lead to fluctuations. Those intent on exploring financing options can benefit from further research and may find advantageous deals by comparing offers from multiple lenders.