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The final Federal Reserve meeting of 2025 was completed this week, and with it, the final interest rate cut of the year was issued. Now comes the interesting part. After all, a Fed rate cut is never a guarantee, so lenders were operating a bit in the dark in the days and weeks leading up to the meeting. But now that the cut has been formalized and Federal Reserve Chairman Jerome Powell has spoken about the trajectory of rate cuts in 2026, there’s more information to digest for lenders.
This is particularly important for the mortgage rate climate, in which buyers and owners hoping to refinance have been encountering interest rates exponentially higher than they were at the start of the decade. Mortgage interest rates have gradually declined for much of 2025 and now, with the federal funds rate at its lowest point since 2022, are well positioned to fall further, even if those improvements come incrementally.
But what are today’s mortgage interest rates, exactly, as of December 12, 2025? Below, we’ll detail the latest rates to know now, post-December Fed rate reduction.
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What are today’s mortgage interest rates?
The average mortgage interest rate on a 30-year term moved down slightly on December 12, 2025, to 5.99%, according to Zillow. The average rate on a 15-year term was 5.37% as of Friday. With both options under 5% right now, then, and with both of these rates considerably higher just at the start of 2025, let alone 2023 or 2024, mortgage rates could now be low enough to justify taking action.
While they’re not near the record lows available earlier in the decade, mortgage rates are now sitting around historical averages. And with a little time spent shopping around online, buyers may be able to find lenders offering rates even lower than these averages right now. Don’t forget, however, that after the previous two Fed rate cuts (before the one issued this week), mortgage interest rates actually ticked up a bit. So, if you can afford today’s rates, it may be worth shopping around to find one low enough that’s worth locking in (you can always refinance in the future).
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What are today’s mortgage refinance rates?
The average mortgage refinance rate on a 30-year term climbed to 6.77% on December 12, 2025, according to Zillow, from 6.67%. The average refi rate for a 15-year term remained unchanged from where it was earlier this week, staying at 5.67%.
While these rates may be low enough for some homeowners to consider a move now, it’s critical to remember that mortgage refinancing requires closing costs to be paid. So you’ll need to weigh those costs against the potential monthly savings these rates now offer to better determine the value of a refinance. And, if you’re considering selling the home before the break-even point on those costs, a refinance is generally worth avoiding.
The bottom line
The average mortgage interest rate on a 30-year mortgage as of December 12, 2025, is just 5.99% and 5.37% for a 15-year option. The median refinance rate is 6.77% for a 30-year option and more than a full percentage point lower at 5.67% for a 15-year refi. There are multiple ways to secure a rate under 6% now, whether you’re a homebuyer or homeowner. And when was the last time you were able to say that? Consider, then, using this week’s Fed rate cut news as a motivation to reconsider your purchase and refinance options.