Mortgage interest rates have been on a gradual decline for much of 2025. Userba011d64_201/Getty Images

With the final month of 2025 officially underway, homebuyers and owners looking to refinance have cautious reasons for optimism. Not only have mortgage interest rates been declining for much of 2025, but purchase rates in particular have hit 3-year lows multiple times already in recent months. And with another Federal Reserve meeting on the calendar for next week and the chances of a rate cut now over 87% (according to the CME Group's FedWatch tool), rates could easily continue to decline in December, too.

That will set up homebuyers and owners well heading into 2026, giving them more affordable options in the winter and the traditional spring homebuying season . At the

See Full Page