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The average 30-year fixed mortgage rate rose slightly to 6.22% this week but remains below both the year-to-date average of 6.62% and the 6.60% rate seen a year ago.
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Freddie Mac economists say lower rates compared with earlier in the year are helping restore balance, even as affordability challenges persist due to high home prices and limited inventory.
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The 15-year fixed mortgage rate increased to 5.54% but also remains lower than a year ago, offering modest opportunities for some buyers and homeowners who financed at higher rates last year.
Mortgage rates edged slightly higher this week but remain well below their average levels for the year, offering a measure of stability for homebuyers and the broader housing market.
According to Freddie Mac’s latest Primary Mortgage Market Survey, the average rate on a 30-year fixed-rate mortgage rose to 6.22% as of December 11, up modestly from 6.19% the previous week. Despite the uptick, the rate is notably lower than the 6.62% average recorded so far this year and sits below where rates stood at the same point in 2024, when the 30-year mortgage averaged 6.60%.
Economists say the current rate environment reflects a market that is gradually settling after months of volatility driven by inflation concerns, Federal Reserve policy, and shifting economic data. Sam Khater, Freddie Mac’s chief economist, said the pullback from higher levels seen earlier in the year has helped restore some equilibrium. With borrowing costs no longer climbing rapidly, buyers and sellers may find it easier to plan and negotiate transactions.
Shorter-term mortgage rates also moved higher this week. The average 15-year fixed-rate mortgage increased to 5.54%, up from 5.44% a week earlier. Even so, that rate remains below its year-ago level of 5.84%, continuing a trend of modest improvement compared with late 2024.
Mixed picture for refinancing
For homeowners considering refinancing, the picture is mixed. While rates are lower than last year, they are still well above the historic lows seen earlier in the decade, limiting the pool of borrowers who can benefit from refinancing into a meaningfully cheaper loan. However, homeowners who took out mortgages during last year’s peak may find some opportunities, particularly with shorter-term loans.
Homebuyers, meanwhile, are watching rates closely as they weigh affordability against limited housing supply in many markets. Even small changes in mortgage rates can have a noticeable impact on monthly payments, especially given elevated home prices. A rate near 6.2% is unlikely to spark a surge in demand on its own, but it may encourage cautious buyers who had been sidelined by higher borrowing costs to reenter the market.
Looking ahead, analysts expect mortgage rates to continue moving within a relatively narrow range in the near term, tracking economic indicators such as inflation data, labor market trends, and signals from the Federal Reserve about the future path of interest rates.
For now, the combination of slightly lower rates compared with earlier in the year and more predictable week-to-week movements is offering a sense of steadiness that has been largely absent from the housing market in recent years.