Dec 16, 2025
U.S. Mortgage Rates Hold Above 6% as Affordability Pressures Persist
In early December 2025, U.S. mortgage rates remain elevated by historical standards, though they have eased modestly compared to their 2023 peaks. The average 30-year fixed-rate mortgage hovers around 6.22 percent, while the 15-year fixed-rate mortgage stands near 5.54 percent. These levels continue to place significant pressure on affordability, especially for first-time buyers and households with limited savings, as monthly payments remain substantially higher than during the low-rate era of the 2020-2021.
Despite recent rate cuts by the Federal Reserve, mortgage rates have not declined in step, reflecting the influence of Treasury yields, investor sentiment, and inflation expectations. The Fed announced that, starting on December 12, it will begin purchasing $40 billion per month in U.S. Treasury bills in order to rebuild reserves in the financial system. This could be good news for mortgage rates, as Treasury bill yields may decline. Many existing homeowners are still locked into mortgages below 4 percent, reducing their incentive to move or refinance.
Looking ahead, mortgage rates will remain sensitive to both inflation data and monetary policy signals. Analysts suggest that a sustained move of 30-year rates into the 5–5.5 percent range would be necessary to stimulate housing demand on a broad scale.
Description: 30- and 15-Year Fixed-Rate Mortgages: The 30-year fixed-rate mortgage offers long-term stability with lower monthly payments but higher total interest costs, while the 15-year fixed-rate mortgage features higher monthly payments but lower overall interest costs and faster equity building. Both provide fixed rates for predictable payments throughout the loan term.
