Washington, D.C., December 25, 2025
The average rate on a 30-year U.S. mortgage has decreased to 6.18%, down from 6.21% last week. This positive trend offers hope to potential home buyers and reflects a stabilizing housing market. Meanwhile, 15-year mortgage rates have increased slightly to 5.50%. Factors influencing these rates include Federal Reserve policies and economic indicators. The housing market currently sees more listings and slower sales, highlighting ongoing affordability challenges, especially for first-time buyers.
Washington, D.C.
Average U.S. 30-Year Mortgage Rate Declines to 6.18%
The average rate on a 30-year U.S. mortgage has decreased to 6.18% from 6.21% last week, maintaining a stable range over the past two months. A year ago, this rate was 6.85%. This decline can be viewed as a promising sign for potential home buyers and the housing market as a whole.
Conversely, the average rate for 15-year fixed-rate mortgages, which are commonly used by homeowners refinancing their loans, has risen to 5.50% from 5.47% last week. This slight increase marks a contrast to the generally declining trend seen in long-term mortgage rates.
Factors Influencing Mortgage Rates
Mortgage rates are influenced by various factors, including the Federal Reserve’s interest rate policies and bond market expectations regarding the economy and inflation. At midday Wednesday, the 10-year Treasury yield, which lenders use as a benchmark for pricing home loans, was at 4.15%, up modestly from last week’s 4.12%. These fluctuations indicate a complex interplay between economic indicators and mortgage pricing.
Current Housing Market Trends
In the housing market, there has been an increase in home listings and price reductions by sellers, as homes are taking longer to sell. However, affordability remains a significant challenge, particularly for first-time buyers. Home sales in November rose slightly month-over-month but were lower year-over-year. So far this year, total home sales are down 0.5% compared to the same period in 2024. This duality reflects the resilience of determined sellers and buyers while highlighting the ongoing affordability issues facing the market.
Future Projections for Mortgage Rates
Economists predict that mortgage rates will remain slightly above 6% into next year. This forecast suggests that while there may be minor fluctuations, the overall trend is stabilizing, providing a clearer picture for potential buyers and investors alike.
Impact on Local Economy
The current mortgage rate landscape has implications for the broader economy, especially for small businesses reliant on housing construction and related sales. With rates stabilizing and showing slight declines, the outlook might encourage prospective homeowners and investors to proceed with purchases, positively impacting the San Diego CA business environment. Local entrepreneurs have the opportunity to thrive as consumer confidence in a favorable borrowing climate increases.
Importance of Supporting Local Businesses
As we observe changes in mortgage rates and housing trends, it’s vital to support local businesses that drive economic growth in San Diego. Encouragement of private investment and attention to the needs of small business owners can enhance community resilience, making it easier for them to navigate economic challenges and continue contributing to job creation.
Key Takeaways
In summary, the decline in the 30-year mortgage rate brings a sense of optimism amid a challenging housing market. Factors including Federal Reserve policies and economic inflation remain crucial in shaping this landscape. Support for local businesses and entrepreneurship is essential to harnessing potential economic growth and resilience within the San Diego community.
Frequently Asked Questions (FAQ)
What is the current average rate on a 30-year U … ?
The average rate on a 30 … has decreased to 6.18% … maintaining a stable range over the past two months.
How does the Federal Reserve influence mortgage rates?
Mortgage rates are influenced by various factors, including the Federal Reserve’s interest rate policies and bond market expectations regarding the economy and inflation.
What is the current state of the housing market?
In the housing market, there has been an increase in home listings and price reductions by sellers, as homes are taking longer to sell. However, affordability remains a significant challenge, particularly for first-time buyers. Home sales in November rose slightly month-over-month but were lower year-over-year. So far this year, total home sales are down 0.5% compared to the same period in 2024.
What are the future projections for mortgage rates?
Economists predict that mortgage rates will remain slightly above 6% into next year.
Key Features
| Feature | Details |
|---|---|
| Current 30-Year Mortgage Rate | 6.18% |
| Change from Last Week | Decreased from 6.21% to 6.18% |
| Change from Last Year | Decreased from 6.85% to 6.18% |
| Current 15-Year Mortgage Rate | 5.50% |
| Change from Last Week | Increased from 5.47% to 5.50% |
| Change from Last Year | Decreased from 6.00% to 5.50% |
| 10-Year Treasury Yield | 4.15% |
| Change from Last Week | Increased from 4.12% to 4.15% |
| Home Sales in November | Rose slightly month-over-month but were lower year-over-year; total home sales down 0.5% compared to the same period in 2024 |
| Future Mortgage Rate Projections | Expected to remain slightly above 6% into next year |
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Author: STAFF HERE SAN DIEGO WRITER
The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
