Key US Mortgage Rate Drops to 2025 Low, Freddie Mac Says

03:05 PM EST, 12/31/2025 (MT Newswires) -- The average rate on 30-year fixed home loans this week dropped to the lowest of the year, Freddie Mac said Wednesday.

The closely watched housing market benchmark averaged 6.15% as of Wednesday, compared with 6.18% last week and 6.91% a year earlier.

"After starting the year close to 7%, the average 30-year fixed-rate mortgage moved to its lowest level in 2025 this week, an encouraging sign for potential homebuyers heading into the new year," said Sam Khater, Freddie Mac's chief economist.

The average 15-year fixed-rate mortgage fell to 5.44% from 5.50% last week and 6.13% a year earlier.

"There is little indication that the Federal Reserve will make any major changes to interest rates in January, and the market is responding favorably to a period of relative stability," said Joel Berner, a senior economist at News Corp.'s (NWSA) Realtor.com.

Fed officials appeared to be markedly divided over the potential monetary policy path ahead amid continued concerns about high inflation and labor market weakness, minutes from the central bank's Dec. 9-10 meeting showed Tuesday.

On Monday, the National Association of Realtors said pending home sales in the US last month had their best performance in almost three years amid improving affordability conditions.

"Affordability was the primary constraint on the housing market in 2025, with mortgage rates clocking in the mid-6% range for most of the year and home prices remaining elevated, which kept many buyers on the sidelines," Berner said.

Price: 29.78, Change: -0.14, Percent Change: -0.47

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