Mortgage relief arrived for homebuyers heading into 2026 as mortgage rates fell to their lowest level of 2025, offering a modest but notable shift after a year of elevated borrowing costs. Mortgage relief took shape in Freddie Mac’s final Primary Mortgage Market Survey of the year, which showed the average 30-year fixed mortgage rate dipped to 6.15%, down from 6.18% the prior week.
The average 30-year rate began the year near 7%, underscoring the significance of the decline. “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.
Mortgage rates often track the 10-year Treasury yield, which hovered around 4.14% ahead of the New Year’s holiday. Lower rates coincided with improving housing activity. The National Association of Realtors reported that November home sales rose 3.3% nationwide, with gains across every region, suggesting renewed buyer confidence.
Broader economic indicators also showed momentum. The Bureau of Economic Analysis reported third-quarter GDP growth of 4.3%, topping economist expectations. Inflation showed signs of cooling as well. The Bureau of Labor Statistics said the consumer price index rose 0.2% in November and 2.7% year over year, both below forecasts.
Still, challenges remain. Employers added just 64,000 jobs in November, and unemployment climbed to 4.6%, the highest since September 2021. The Federal Reserve cut rates by 25 basis points in December, though officials remain divided, with some warning that progress toward the 2% inflation goal has stalled.
President Donald Trump renewed criticism of Fed Chairman Jerome Powell this week, calling him a “fool” and reiterating plans to name a new chair in January, adding another variable as mortgage relief reshapes the housing outlook.
