As a homeowner, there are so many things that you have to keep in mind and think about. Well, one of them has to be locking in mortgage rates (or not), depending on your financial goals and health.

Mortgage rates are always changing, fluctuating up and down in response to the economy and various global factors that impact the US real estate market. It can be a whirlwind to understand and figure out whether you should lock in your mortgage rates or not. You might be getting conflicting information from the people you love and everyone else around you.

Don't fear. Understanding mortgage rates isn't that hard. Our guide below is ready to answer all your mortgage rate questions.

What is the US Mortgage Rate Right Now?

As of mid-December, 2025, here are the current mortgage rate trends:

  • 30-Year Fixed: ~6.25% - 6.30% (APR ~6.34% - 6.46%)
  • 15-Year Fixed: ~5.375% - 5.625% (APR ~5.72% - 5.75%)
  • 5/1 ARM: ~5.625% (APR ~6.52%)
  • 30-Year FHA: ~6.12% (APR ~6.86%)
  • 30-Year VA: ~5.57% (APR ~5.73%)

Now, what does that mean for you? If you are looking at all these numbers and they seem like gibberish to you, then don't worry. Let's get to understanding mortgage rates a bit more.

Fixed Rates

Fixed rates are rates that stay steady throughout the life of the loan. So if you get a 30-year fixed mortgage, that means whatever the rate you received during that time will stay steady during that time.

Locking in mortgage rates means you are only stuck with a certain rate for a period of time. You can choose this period to be 15 years or 30 years. Why would you do this?

Well, if you are concerned that the mortgage rates are going to go up in the future due to economic turmoil or the threat of war, then you will want to hold the rates steady for a while. This will ensure you don't have to worry about your rates going through the roof at some point in time.

ARM (Adjustable-Rate Mortgage)

An ARM rate starts at a certain low set point and then adjusts periodically based on market conditions. 5/1 ARM, for example, has a fixed rate for 5 years and then periodically adjusts every year after that.

If you are expecting to sell in the near future or expect the rates to go down, then you will want to choose an ARM rate for your mortgage. Of course, this means that your monthly payments aren't steady and you need to be prepared for your mortgage payments to go up and down.

FHA Loan Rates

If you are in a situation where you have a lower credit score or a smaller down payment, then you can get government-backed loans. These help buyers out who otherwise wouldn't be able to purchase a home on their own.

If you are a first-time homebuyer who has a poor credit history, consider this option for yourself. Downpayments can be as low as 3.5%.

VA Loan Rates

For eligible veterans, active-duty service members, and some military spouses, the VA loan rates are often a lower rate that has no down payment requirements and no private mortgage insurance (PMI) necessary. It's a great option for eligible military borrowers.

Are USA Mortgage Rates Going Down?

This is a very difficult question to answer, since so many different factors affect mortgage rates. But yes, since the 2024 highs, the mortgage rates have generally been trending downwards.

Does this mean this trend will continue into 2026? Highly unlikely. It's more likely that the rates will stay at the rates mentioned above for a while.

But there's no way to predict rates like that. So how do you decide if you should lock in your mortgage rates or not?

In general, you should consider your financial health and what you can afford rather than what you think the market is going to do. Considering inflation and economic news, it's likely the rates will have a bumpy ride in the next couple of years.

To keep things steady for your household, consider locking in your rates into a fixed mortgage. Also, consider reading this article on the impact of lockin effect on U.S. homeowners decisions. The more research you can do on this subject, the better off you will be.

Frequently Asked Questions

Is It Still a Good Idea to Buy a Home?

Many Americans wonder if it's still a good idea to purchase a home in the United States. Well, in many ways, it still is.

There isn't a better investment you can make of your money, besides going into stocks and bonds. It's also a great way of ensuring you have at least one investment in place that can sustain you in your old age, especially if you are not good with finances in general.

However, it can be hard on folks when mortgage rates are all over the place, so make sure to lock in your rates if you have that opportunity.

What Percentage of Your Monthly Salary Should Be Your Mortgage Payment?

Most experts say that your rent or mortgage should be 25% of your take-home pay. It should definitely not be more than 30 to 32% of your monthly income.

If you aren't in such a situation, consider speaking to the financial institution where your mortgage is, and ask them how you can reduce your monthly payments so your finances are more in line.

It can make a huge difference to your mental health if you aren't worrying about your home payments every month. If you don't ask, you will never know, so go ahead and enquire.

Mortgage Rates - To Lock In Or Not?

This is the ultimate question that's always swirling around the minds of every homeowner: to lock in mortgage rates or not. Now that you have more data on the current trends and the economic situation in the US, you can make a more informed decision.

Don't get stuck in analysis paralysis, though, and make the decision soon, before mortgage rates go up again.

Also, check out related articles on our website to stay informed on a wide variety of related topics. Knowledge is power, after all.

This article was prepared by an independent contributor and helps us continue to deliver quality news and information.

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