Long-Term Mortgage Rates Decline to 6.18%

December 25, 2025 - 02:34

The average long-term mortgage rate has decreased to 6.18%, down from 6.21% the previous week, according to recent reports. This marks a notable rise from the average of 6% recorded a year ago.

Several factors contribute to fluctuations in mortgage rates, including the interest rate policies set by the Federal Reserve and the expectations of bond market investors regarding the economy and inflation. As these elements shift, they can significantly impact the cost of borrowing for homebuyers.

This slight decline in rates may provide some relief for prospective homeowners, making it a more favorable time to enter the housing market. However, the overall trend indicates that mortgage rates remain higher than they were just a year prior, suggesting that the housing market continues to face challenges. Homebuyers are advised to stay informed about these trends as they consider their financing options.