Mortgage Rates (30-Year Trend)
Indicator Overview: Mortgage rates represent the cost of financing a home and drive affordability and demand in the housing market. Higher rates raise monthly payments, discouraging buyers; lower rates stimulate buying and refinancing. Recent surveys show the average 30 ‑year fixed rate around 6.2% in December 2025. Fannie Mae’s December 2025 housing forecast projects gradual easing to around 5.9% by late 2026.
Six‑Month Trend: Mortgage rates have drifted down modestly over the past six months as inflation moderated and investors priced in eventual Fed easing. Rates peaked near the low‑7 % range in mid‑2025 but declined to the mid‑6 % range by November.
Six‑Month Forecast: Major forecasters (Fannie Mae, Mortgage Bankers Association) expect rates to gradually decline but remain elevated, averaging between 6.0 % and 5.9 % by mid‑2026. Economic uncertainty and the pace of Fed rate cuts are the main drivers. Homebuyers should monitor inflation data, Fed policy meetings and bond yields.
Chart: See our interactive chart on the main Real Estate Market Indicators page.
