Mortgage rates are holding steady for the holidays: the average 30-year fixed rate is 6.18%, while the 15-year fixed rate is 5.50%. Prospective borrowers can take advantage of these rates to compare offers from multiple lenders. Current national average rates vary from 6.11% for a 30-year fixed to 5.42% for a 15-year VA loan.

Mortgage refinance rates are slightly higher than purchase rates, with the 30-year fixed at 6.13% and the 15-year fixed at 5.59%. Refinancing can result in a lower rate if you improve your credit score or lower your debt-to-income ratio. Consider a shorter term for a lower rate, but higher monthly payments.

A 30-year fixed-rate mortgage offers lower and predictable monthly payments compared to an adjustable-rate mortgage. However, the main disadvantage is the higher interest paid over the life of the loan. In contrast, a 15-year fixed mortgage comes with lower interest rates and an earlier payoff, but higher monthly payments.

Adjustable-rate mortgages lock in rates for a set period before changing periodically. While the introductory rate is usually lower, rates can increase later, leading to unpredictable monthly payments. Consider moving before the intro-rate period ends to benefit from a low rate without risking an increase later.

Economists predict minimal changes in mortgage rates through 2026, despite recent cuts to the federal funds rate. While rates have been relatively stable since mid-October, they remain lower than a year ago. Securing a low mortgage refinance rate requires improving credit, lowering DTI, and potentially refinancing into a shorter term for a lower rate.

Read more at Yahoo Finance: Mortgage and refinance interest rates today, December 24: All is calm