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Mortgage rate news this week - Dec. 4, 2025

30-year mortgage rates retreat, market awaits Fed move

The average rate for 30-year, fixed-rate mortgages fell to 6.28% this week, down from 6.32% the previous week, according to Bankrate’s latest lender survey. This is up from a low of 6.17% in late October.

Lisa Sturtevant, chief economist at Bright MLS, blames the government shutdown, at least in part. “A lack of data has left the market with a cloudy picture of the economy, which, in turn, has pushed rates higher in recent weeks,” Sturtevant says. 

The longer term outlook for rates is complicated by conflicting economic signals. On one hand, inflation holds above the Federal Reserve’s official target of 2%. On the other, sluggish jobs numbers may lead the Federal Reserve to cut rates again this month, and mortgage professionals hope that would nudge mortgage rates lower. 

However, the Fed doesn’t dictate mortgage rates — they can rise even when the central bank cuts its benchmark rate. So while next week’s decision may lower the cost of borrowing, prospective buyers should also be prepared for the opposite. 

Current mortgage and refinance interest rates

Mortgage and refinance interest rates vary based on loan term, type and other factors.

A variety of factors influence mortgage rates, including economic market trends, government actions and your borrowing profile. Understanding those factors can help you make the best decision about when and how to consider borrowing a 30-year mortgage. Below we've listed some key factors, including those you can — and can't — influence, to help you make the best decision for your own situation.

Factors you can control

• Your credit score: Lenders reserve their best rates for homebuyers who pose the least amount of risk. They consider individuals with high credit scores more likely to pay off their loans promptly, making them low risk, while those with low credit scores may pose a higher risk of late payments or default. Improving your credit score before you apply for a mortgage can lead to lower overall costs.
• Your overall financial picture: How stable is your income? Do you earn enough to cover your debts comfortably? Your overall financial picture includes your debt-to-income ratio (DTI), and the lower this is, the more likely lenders will be to offer a lower rate. A high DTI suggests that you are carrying more debt than you can comfortably manage, which may make it hard for you to make your regular mortgage payments. 
• Your down payment: Not surprisingly, the down payment has a direct influence on your overall mortgage cost, because it's a sign of how much equity you're bringing into the picture. A larger down payment reduces the lender's risk, and this might qualify you for a more favorable interest rate. A larger down payment also means you'll need to borrow less, leading to a smaller overall loan.
• Your loan type: Each loan type has its own pricing structure and level of risk. Generally, well-qualified buyers with a low DTI can find competitive rates regardless of the kind of loan they have. Historically, VA rates have been slightly lower than conventional, and 15-year mortgage rates are typically lower than those on 30-year loans.

Factors outside of your control

• The 10-year Treasury bond yield: 30-year mortgage rates directly correspond to movement in the 10-year Treasury bond yield. As investors buy the 10-year Treasury bond, it drives down the yield, taking the 30-year rate with it.
• The spread: Mortgage rates don't exactly match the 10-year yield. There's what's called a “spread” between the two. Historically, this difference has been around 2%. So, if the 10-year yield is 4%, 30-year mortgage rates would be around 6%. This spread is not stagnant, however. It grows and contracts as lenders price in perceived risk.
• Federal Reserve decisions: When the Fed raises or lowers the federal funds rate, there is a domino effect on other areas, including inflation forecasts and bond yields. Mortgage lenders pay close attention to what the Fed says and does, and may respond by raising or lowering rates after Fed decisions.
• The global economy: You might not think that financial decisions made across the globe would influence U.S. mortgage rates, but the opposite is true. Issues that impact global economics — from pandemics to wars to international trade agreements — ripple through the American economy and may cause mortgage rates to rise or fall as investors adjust to these global factors.
• Your local housing market: It's easier to understand why the local market impacts rates, because lenders usually respond quickly to local competition. In a hot housing market, where demand is strong and houses are selling quickly, they may offer more competitive rates to win over homebuyers. In slower markets, interest rates may remain slightly higher to allow lenders to price in the additional risk.

How to get the best 30-year mortgage rate

If you compare loan offers from a few mortgage lenders, you’ll have a better chance of landing a competitive rate. Here's how:

• Get preapproved: Get rate quotes from at least three mortgage lenders, ideally on the same day so you have an accurate basis for comparison. 
• Compare the interest rate and APR: The interest rate is the cost of borrowing, while the APR includes the interest rate and fees. This makes the APR a more complete picture of the cost of the loan.
• Consider the lender’s ratings and your experience: Aside from the numbers, evaluate lenders for convenience and responsiveness. Take a look at what other borrowers have said about the lender, too.

Should you get a 30-year mortgage?

The 30-year loan term appeals to a wide range of borrowers thanks to a more affordable monthly payment. It also works well for borrowers who would prefer to use a loan to invest their home's equity elsewhere.

Frequently asked questions