The average rate for a 30-year fixed-rate mortgage dipped to 6.21% this week, down from 6.22% last week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for a 30-year was 6.72%.
“The average 30-year fixed-rate mortgage has remained within a narrow 10-basis point range over the last two months,” says Sam Khater, chief economist for Freddie Mac, in a statement. “With rates down half a percent over last year, purchase applications are 10% above the same time one year ago.”
The average rate for a 15-year fixed-rate mortgage was 5.47%, down from 5.54% last week and down from 5.92% a year ago.
Samir Dedhia, CEO of One Real Mortgage, notes that “compared to a year ago, the 30-year rate is down over 50 basis points, and that’s sparked renewed activity.”
“After the Fed’s third rate cut of 2025, markets initially rallied, but investor reaction soon turned cautious,” Dedhia says in a statement. “The commentary that followed the December meeting signaled a possible pause in the easing cycle, which led bond yields to rise, putting slight upward pressure on mortgage rates. This week’s movement is a reflection of that tug-of-war: rates have bounced slightly, but remain anchored near 2025 lows. It’s a reminder that mortgage rates don’t follow Fed cuts directly, and they respond to broader expectations around inflation, employment, and long-term economic strength.”
“For consumers, this is still a favorable window,” Dedhia says. “Whether you’re looking to buy or refinance, the combination of steady rates, moderating home price growth and increased housing supply is creating opportunity. Yes, we’ve seen some hesitation after the Fed’s comments, as investors may be interpreting the recent cut as possibly the last for some time, but the overall rate environment is still much better than it was earlier this year. And with the Fed’s next steps dependent on incoming data, staying informed and ready to move is the smartest approach heading into 2026.”
Photo: Susan Q Yin