Slight rate dip offered buyers some relief, but affordability challenges still loom
Mortgage rates edged lower but stayed in a tight band in mid‑December, underscoring a market in which easing inflation and a softer labor backdrop have not yet translated into a decisive break for borrowers.
Freddie Mac’s latest Primary Mortgage Market Survey showed the average 30‑year fixed mortgage at 6.21% for the week ending December 18, down from 6.22% a week earlier and 6.72% a year before.
The 15‑year fixed averaged 5.47%, compared with 5.54% the prior week and 5.92% a year ago. The moves kept rates near their lowest levels in more than a year, but still well above the sub‑4% era many lenders and brokers remembered.
“The average 30‑year fixed-rate mortgage has remained within a narrow 10-basis point range over the last two months,” Sam Khater, Freddie Mac’s chief economist, said. “With rates down half a percent over last year, purchase applications are 10% above the same time one year ago.”
The data has been shaped by a delayed November jobs report that pointed to a cooling labor market. The unemployment rate rose 0.2 percentage points to 4.6%, the highest since September 2021, while the economy added 64,000 jobs after more than 100,000 were reportedly lost in October.
U.S. jobs data show payrolls barely changed since April and unemployment rising to 4.6%, reinforcing expectations for further Fed rate cuts early next year. Mortgage rates remain near one-year lows, offering a stable backdrop for buyers.https://t.co/7tv05KTNjn
— Mortgage Professional America Magazine (@MPAMagazineUS) December 16, 2025
At the same time, inflation has eased. The latest Consumer Price Index reading showed overall prices up 2.7% over the 12 months through November, slightly below economists’ expectations. The 10‑year Treasury yield, which mortgage rates tended to track closely, hovered a little above 4%, contributing to the recent stability in pricing.
Large investors such as Fannie Mae and their economists expect rates to remain in the mid‑6% range in the near term as the Federal Reserve moves cautiously on further cuts, rather than rushing to drive borrowing costs sharply lower.
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