Average Mortgage Refinance Rates Decline Ahead of Fed Meeting

WASHINGTON, D.C. — The average mortgage refinance rate for a 30-year fixed-rate home loan has dropped to 6.80% as of December 2, 2025, according to recent data from Bankrate. This marks a slight increase from last week, when the average was 6.71%. The 15-year refinance rate, however, is lower at 5.76%, up from 5.64% just days prior.

Homeowners looking to refinance or tap into their home equity may find these rates more attractive as they trend below previous peaks. The current rates are still significantly higher than the pandemic-era lows of around 2% and 3%. In fact, the average 30-year mortgage purchase rate is now 5.99%.

According to Glen, an editor at Fortune, many homeowners are locked in with rates below 6%, making them hesitant to refinance. As of late 2024, about 82.8% of homeowners had rates lower than 6%. This phenomenon is referred to as the lock-in effect, where homeowners prefer to hold onto low rates rather than move or refinance.

The recent drop in mortgage rates comes as economic indicators suggest a potential cut in the federal funds rate, with the Federal Reserve meeting scheduled for December 10, 2025. “Inflation is easing gradually, but not fast enough to force the Fed’s hand,” said Dr. Anthony Kellum, president and CEO of Kellum Mortgage. “I expect rates to remain essentially the same, with only minor ups and downs.”

Experts recommend homeowners to consider refinancing if they can secure a new rate at least one percentage point lower than their current rate. Upfront costs for refinancing typically range from 2% to 6% of the loan amount, which should be factored into the decision-making process.

It is also advised for homeowners to shop around among lenders, as staying with one’s original lender might offer advantages like waived closing costs, though competitive rates may be found elsewhere.

As market conditions change, potential buyers and homeowners interested in refinancing should remain vigilant and compare offers to find the most favorable mortgage rates. The economic landscape suggests that further reductions in mortgage rates could emerge in the near future.