Mortgage Rates Today, Thursday, December 4: Lower for Now

Mortgage rates went on a stomach-churning ride to start the week, but at least for now, rates have settled. Even better, they’ve settled at the low end of their recent range.

The average interest rate on a 30-year, fixed-rate mortgage ticked down to 6.00% APR, according to rates provided to NerdWallet by Zillow. This is one basis point lower than yesterday and 13 basis points lower than a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.

Lately there’s been a lot of will-they-or-won’t-they tension with the Federal Reserve, which has its final meeting of 2025 next week. Usually when we’re this close to a meeting, markets have fully made up their minds about whether the Fed will raise, lower or maintain the federal funds rate. But this time around, we’ve seen more uncertainty than normal — more on that below the graph.

That intrigue means that mortgage lenders, like the rest of us, are trying to figure out where things stand, and we’re seeing less agreement than usual. When mortgage rates are changing rapidly, it’s vital to compare offers from multiple lenders. Even though you’re providing the same information to each lender, the rate quotes you get could be wide ranging.

Research from Freddie Mac has shown that when mortgage rates are relatively stable, comparing quotes from two lenders can net borrowers an average rate reduction of 10 basis points, or one-tenth of a percentage point. When mortgage rates are changing rapidly, that average reduction jumps to 20 basis points. A fifth of a percentage point may not sound like much, but Freddie Mac estimates that comparing quotes from just two lenders could save borrowers up to $600 a year. Shopping four or more lenders could net you annual savings of over $1,200.

Mortgage rates are constantly changing, since a major part of how rates are set depends on reactions to new inflation reports, job numbers, Fed meetings, global news … you name it . For example, even tiny changes in the bond market can shift mortgage pricing.

Thanks to this fall’s government shutdown disrupting federal agencies’ data collection, the central bankers are working with considerably less information than usual. That makes their next move less clear to them and to everyone watching them. On top of that, the Fed governors haven’t been in sync lately, with some calling for a cut and others espousing caution in public remarks.

Markets are leaning heavily toward a 25-basis-point cut, though there are still holdouts who think the Fed will maintain current levels. Lackluster November employment data released yesterday by payroll services company ADP bolstered the case for a cut, but tomorrow we get federal data that could have a larger impact.

Friday morning, the Department of Commerce releases inflation data for September. That’s right, inflation numbers from three months ago. That report includes the latest personal consumption expenditures price index, or PCE, which is the Fed’s preferred gauge of inflation.

Even though the information is more outdated than skinny jeans, the September PCE could exert a strong influence on the Fed’s decision when it meets next week. If the report shows inflation running hot, that could strengthen the case for holding rates steady. Having a clearer picture of the Fed’s next move will likely firm up market expectations and give mortgage rates a more definite direction.

Refinancing might make sense if today’s rates are at least 0.5 to 0.75 of a percentage point lower than your current rate (and if you plan to stay in your home long enough to break even on closing costs).

With rates where they are right now, you could start considering a refi if your current rate is around 6.51% or higher.

Also consider your goals: Are you trying to lower your monthly payment, shorten your loan term or turn home equity into cash? For example, you might be more comfortable with paying a higher rate for a cash-out refinance than you would for a rate-and-term refinance, so long as the overall costs are lower than if you kept your original mortgage and added a HELOC or home equity loan.

If you’re looking for a lower rate, use NerdWallet’s refinance calculator to estimate savings and understand how long it would take to break even on the costs of refinancing.

There is no universal “right” time to start shopping — what matters is whether you can comfortably afford a mortgage now at today’s rates.

If the answer is yes, don’t get too hung up on whether you could be missing out on lower rates later; you can refinance down the road. Focus on getting preapproved, comparing lender offers, and understanding what monthly payment works for your budget.

NerdWallet’s affordability calculator can help you estimate your potential monthly payment. If a new home isn’t in the cards right now, there are still things you can do to strengthen your buyer profile. Take this time to pay down existing debts and build your down payment savings. Not only will this free up more cash flow for a future mortgage payment, it can also get you a better interest rate when you’re ready to buy.

If you already have a quote you’re happy with, you should consider locking your mortgage rate, especially if your lender offers a float-down option. A float-down lets you take advantage of a better rate if the market drops during your lock period.

Rate locks protect you from increases while your loan is processed, and with the market forever bouncing around, that peace of mind can be worth it.

The rate you see advertised is a sample rate — usually for a borrower with perfect credit, making a big down payment, and paying for mortgage points. That won’t match every buyer’s circumstances.

In addition to market factors outside of your control, your customized quote depends on your:

• Location and property type

Even two people with similar credit scores might get different rates, depending on their overall financial profiles.

Maybe — but even personalized rate quotes can change until you lock. That’s because lenders adjust pricing multiple times a day in response to market changes.