Mortgage rates have dropped to 6.06% for a 30-year fixed-rate mortgage, the lowest of 2025 according to Zillow. It’s a good time to buy before year-end. Refinance rates are slightly higher, averaging 6.20%. Use a mortgage calculator to estimate monthly payments based on rates and term lengths.

Economists predict mortgage rates won’t drastically drop by the end of 2025. The Federal Reserve made two rate cuts in 2025 and may cut again. 30-year rates remain at 6.06% for purchases and 6.20% for refinances, but individual rates vary based on location and financial status.

15-year mortgages offer lower rates than 30-year ones, saving money in the long run. For a $400,000 mortgage, a 30-year term at 6.06% costs $2,414 monthly, totaling $468,915 in interest. A 15-year term at 5.53% costs $3,275 monthly, totaling $189,447 in interest. Consider extra payments to pay off faster and save on interest.

Read more at Yahoo Finance: Lowest 30-year rate this year