December 27, 2025 | Lowest Adjustable-Rate Mortgage Holds at 4.25%

As of December 27, 2025, the 30-year Adjustable-Rate Mortgage (ARM) for Purchase remains steady at 4.25%, unchanged from one week ago but down 11 basis points compared to 30 days prior. This stability in yield spreads suggests a modest reduction in the cost of borrowing over the last month, which may benefit buyers seeking initial lower rates with potential future adjustments. First-time homebuyers and those planning purchases can leverage this rate environment while monitoring market shifts. Given the absence of movement in the past week, members should evaluate whether an adjustable rate aligns with their risk tolerance or consider fixed-rate options for long-term predictability. For members weighing refinancing decisions, assessing current ARM terms against fixed alternatives is advisable to optimize financial outcomes. For details, visit https://www.coastccu.org/personal/mortgage-loans/.

On December 27, 2025, the 15- to 30-year Adjustable Rate Mortgage (5/6 ARM) for Purchase stands at 5.875%, marking a notable decline of 25 basis points compared to one week ago and a moderate decrease of 12.5 basis points relative to 30 days prior. This reduction in yield spreads lowers the immediate cost of borrowing for buyers opting for this adjustable product. Members considering an adjustable purchase loan can benefit from this dip, especially those expecting stable or declining interest rates over the medium term. However, with rates still above 5.8%, borrowers valuing payment predictability should assess if fixed-rate options might better suit their financial strategy. Given these trends, members are advised to evaluate their mortgage choices carefully and consider refinancing if projected savings exceed associated costs. For details, visit https://www.stmarysbank.com/rates/mortgage-rates.

As of December 27, 2025, Conforming Adjustable-Rate Mortgages (ARMs) for purchase show relatively stable yields. The lowest rate remains the 5/5 ARM at 5.125% with 0.625 points, unchanged over the past week and month, indicating steady borrowing costs for short-term adjustable products. The 7/6 ARM decreased by 12.5 basis points week-over-week to 5.125%, offering a marginally improved yield spread for borrowers seeking a longer initial fixed period before adjustment. Meanwhile, the 10/6 and 15/15 ARMs hold firm at 5.375% and 5.25%, respectively, with no recent movement.

For members evaluating mortgage strategies, these trends suggest that shorter fixed periods with ARMs maintain consistent cost structures, benefiting those comfortable with periodic adjustments. Borrowers should consider their risk tolerance; if stability is preferred, fixed-rate options might be more suitable despite slightly higher initial rates elsewhere. Additionally, refinancing assessments should weigh potential savings against adjustment risks.

For details, visit https://www.sdfcu.org/rates#mortgages-block.

As of December 27, 2025, adjustable-rate mortgage (ARM) products for home purchases have maintained stable pricing with no changes in yield spreads over the past week or month. The 7/1 ARM and 10/1 ARM hold steady at 6.12% and 5.875%, respectively, while the 15/15 ARM remains at 6.00%. Notably, the 10/1 ARM’s rate of 5.875% is the lowest available among adjustable options today. For members considering variable rate loans, this stability suggests predictable short-term borrowing costs without recent volatility.

First-time buyers and those prioritizing lower initial rates might evaluate these ARMs to manage monthly payments effectively. However, borrowers should weigh potential future rate adjustments beyond fixed periods against their long-term financial plans. Veterans and refinancing applicants might find limited movement in cost of borrowing; thus, assessing individual mortgage strategies aligned with interest rate projections remains essential.

Given current conditions, members should consider refinancing only if projected savings exceed associated fees or explore fixed-rate alternatives for greater payment certainty over time. For details, visit https://www.vcu.com/rates#mortgage-rates.

As of December 27, 2025, mortgage rates remain stable, with both the 15-Year Fixed Rate Jumbo and 30-Year Fixed Rate Jumbo at 6.267%. Over the past week, the 30-Year Fixed Rate Jumbo has decreased by 0.12 basis points, while the 15-Year Fixed Rate Jumbo has held steady. In a broader context, there has been a slight increase of 0.15 basis points in the last 60 days for the 15-Year Fixed Rate Jumbo, indicating a mixed trend in borrowing costs. Borrowers may find this stability offers an opportunity to secure financing without significant fluctuations in rates. Monitoring these trends is crucial for effective financial planning.

Inflation expectations, reflected in the Breakeven Inflation Rates, influence mortgage rates and the overall cost of borrowing. Currently, the 15-Year Mortgage Average Rate stands at 5.500%, while the 30-Year Mortgage Average Rate is at 6.180%. Notably, the Mortgage 30-Year Jumbo Average Rates experienced the largest declines, down by 6.48 points in one day, indicating a significant shift in market sentiment. Over the past month, these rates dropped substantially, suggesting potential opportunities for borrowers to secure lower financing costs. As inflation expectations stabilize, monitoring these indicators can provide valuable insights for future borrowing decisions. Consider reviewing current mortgage options to optimize financial outcomes in this evolving landscape.

The home loan landscape is always changing, but your need for reliable advice never goes out of style. At LendMesh, we keep our mortgage resources up to date with current rates, lender specials, and tips from real financial experts. We know that comparing banks and credit unions can seem overwhelming, so we’ve created a platform that breaks down your options and gives you actionable next steps. Whether you’re seeking a fixed-rate mortgage, a low down payment, or just honest answers, you’ll find it all here. Ready to make your next move? Explore the latest at our Mortgage Loans page: https://www.lendmesh.com/loans/mortgage_loans . your shortcut to smarter homeownership.