Mortgage Rates Hold Steady: What to Expect Through 2025

As of November 18, 2025, national average mortgage rates remain stable, with the 30-year fixed rate at 6.09% for home purchases and 6.23% for refinances. These figures are averages, and individual rates may vary based on location and personal financial standing. Experts forecast minimal fluctuation in mortgage rates through the remainder of 2025, with only slight potential decreases anticipated for 2026, dependent on economic conditions and Federal Reserve actions.

The choice between fixed-rate and adjustable-rate mortgages (ARMs) remains a key consideration. Fixed rates provide predictable payments over the loan's life, offering security. ARMs, conversely, often begin with a lower introductory rate for a set period, like the first seven years of a 7/1 ARM, after which the rate adjusts annually based on market factors. While ARMs can offer initial savings, they carry the risk of increasing payments once the introductory period ends.

For borrowers seeking to minimize overall interest paid, a 15-year mortgage is typically more cost-effective than a 30-year term, although it results in higher monthly installments. Smart strategies like making extra payments on a 30-year loan can accelerate payoff and reduce total interest, providing flexibility. A mortgage calculator is a valuable tool for exploring various scenarios and understanding the impact of different rates and terms on monthly expenses.