Mortgage rates slip, sticking near 2025 lows

Published: Thursday, December 18, 2025 at 9:30 pm

Mortgage Rates Continue to Dip, Offering Slight Relief to Homebuyers

Mortgage rates saw a slight decrease this week, according to the latest Primary Mortgage Market Survey released by Freddie Mac. The average rate on a 30-year fixed mortgage fell to 6.21%, a marginal decrease from the previous week's 6.22%. This is notably lower than the 6.72% average recorded a year ago.

The 15-year fixed mortgage also experienced a decline, dropping to 5.47% from 5.54% the prior week.

According to Freddie Mac's chief economist, Sam Khater, the 30-year fixed-rate mortgage has been relatively stable, fluctuating within a narrow 10-basis point range over the past two months. He also noted that purchase applications are up 10% compared to the same period last year, likely influenced by the decrease in rates.

This data follows the Federal Reserve's recent decision to lower the benchmark interest rate by 25 basis points, bringing it to a range of 3.5% to 3.75%. While mortgage rates are not directly dictated by the Fed's actions, they often mirror the movement of the 10-year Treasury yield, which was around 4.12% as of Thursday afternoon.

Hannah Jones, a senior economic research analyst at Realtor.com, suggests that homebuyers are in a more advantageous position compared to last year. She highlights that mortgage rates have eased into the low-6% range, and inventory levels are higher than last year, providing buyers with more choices and flexibility. Furthermore, renters have also seen improved affordability, with rents decreasing for the 28th consecutive month in November.

BNN's Perspective:

While the slight decrease in mortgage rates offers a glimmer of hope for potential homebuyers, it's important to remember that the market remains sensitive to economic fluctuations. The Federal Reserve's actions and the overall economic climate will continue to influence mortgage rates. The current trend, however, suggests a gradual easing, which could provide some relief to both buyers and renters.

Keywords: mortgage rates, Freddie Mac, 30-year fixed mortgage, 15-year fixed mortgage, Federal Reserve, interest rates, homebuyers, housing market, real estate, economic analysis, purchase applications, renters, affordability

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