[News & Insights](https://hbrama.com/news-insights)# Mortgage Rates End 2025 at the Lowest Level of the Year

January 7, 2026      [For Homeowners](https://hbrama.com/for-homeowners) 

Long-term mortgage rates have been declining since mid-2025 and ended the year at their lowest level since September 2024.

According to [Freddie Mac](https://www.freddiemac.com/pmms), the 30-year fixed-rate mortgage averaged 6.19% in December — 5 basis points (bps) lower than November — and the 15-year rate declined 3 bps to 5.48%. Compared to a year ago, the 30-year rate and 15-year rate dropped 53 bps and 45 bps, respectively, or about half a percentage point.

Falling mortgage rates have started to translate into gains as [existing home sales edged up](https://eyeonhousing.org/2025/12/existing-home-sales-edge-higher-in-november/) slightly in November. However, this increase remains limited as mortgage rates above 6% are still considered elevated.

Nonetheless, as financing costs continue to decline, more households are likely to re-enter the housing market. An NAHB analysis shows that a 25-bps reduction in the 30-year mortgage rate from 6.25% to 6%, could bring approximately 1.1 million additional households back into the buyer pool.

NAHB expects the 30-year mortgage rate to average 6.17% in 2026 and reach 6% by 2027.

NAHB Economist Catherine Koh provides more details in [this Eye On Housing post](https://eyeonhousing.org/2026/01/mortgage-rates-end-2025-at-the-lowest-level-of-the-year/).

Keep reading

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