Mortgage Rates Edge Lower to 6.18% as 2025 Comes to a Close

This Week’s Mortgage Rate Update

Mortgage rates saw a slight dip this week, with Freddie Mac reporting the average 30-year fixed rate easing to 6.18%, down from 6.21% the previous week. This places rates near their lowest point of 2025, last seen in late October.

The modest improvement reflects steady movement in the bond market, which fluctuated within a narrow range as investors digested mixed economic signals. A weaker November jobs report and a softer inflation reading were followed by a stronger-than-anticipated third-quarter GDP report. With Federal Reserve policy expectations largely accounted for, limited new economic data due to the government shutdown, and lighter holiday trading activity, mortgage rates have continued to drift rather than make any sharp moves in either direction.

What This Means for the Housing Market

Although the weekly change was minor, ending the year with mortgage rates close to their 2025 lows is encouraging news for homebuyers preparing for 2026. Much of the rate relief this year occurred in late summer and early fall—after peak buying season—so many buyers have yet to fully benefit.

As the new year approaches, housing inventory remains higher than it was last year in most markets, and buyers are entering 2026 with a noticeably improved rate environment compared to the spring of 2025, when rates exceeded 6.80%. If mortgage rates can remain steady—or dip slightly further—buyers could experience a meaningful boost in purchasing power, even as broader economic and Fed-related uncertainties persist. After two slower years for housing, it may not take much improvement for 2026 to feel like a turning point.