Mortgage rates fell again this week, mortgage buyer Freddie Mac said Wednesday.
Freddie Mac’s latest Primary Mortgage Market Survey, released Wednesday, showed the average rate on the benchmark 30-year fixed mortgage decreased to 6.18% from last week’s reading of 6.21%.
The average rate on a 30-year loan was 6.85% a year ago.
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“The modest decline reflects a bond market that moved throughout the week – albeit within a tight range – following a mix of cooling and resilient macro signals,” said Realtor.com senior economist Jake Krimmel.
Mortgage rates are not directly affected by the Fed’s interest rate decision but closely track the 10-year Treasury yield. The 10-year yield hovered around 4.14% as of Wednesday afternoon.
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On Tuesday, the Bureau of Economic Analysis released its initial estimate of third-quarter GDP, which showed the economy grew at an annualized rate of 4.3% in the three-month period including July, August and September. That figure topped the expectations of economists polled by LSEG, who had estimated 3.3% GDP growth in the third quarter.
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And, last week, the government released the latest inflation and employment figures.
The Bureau of Labor Statistics said on Thursday that the consumer price index rose 0.2% in November from the prior month, while it increased to 2.7% on a year-over-year basis. Both of the figures were cooler than the expectations of economists polled by LSEG, who projected a 0.3% monthly rise and a 3.1% year-over-year figure.
The Labor Department on Tuesday reported that employers added 64,000 jobs in November. The unemployment rate ticked up to 4.6% for November, the highest since September 2021.
Meanwhile, the average rate on a 15-year fixed mortgage rose to 5.5% from last week’s reading of 5.47%.
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Krimmel said that inventory is higher than last year in most markets and buyers will enter the new year with a better rate environment than they experienced in the 2025 spring season.
“If mortgage rates can simply hold in this range – or move modestly lower – buyers are likely to see a noticeable increase in purchasing power next year, even amid lingering macro and Fed policy uncertainty,” he said. “It won’t take much improvement from here for 2026 to feel like a step forward after two slow housing years.”
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