Hardware Retailing The Industry's Source for Insights and Information
At the end of December 2025, long-term mortgage rates were at the lowest level since September 2024, continuing the steady decline seen since mid-2025.
The 30-year fixed-rate mortgage averaged 6.19% in December, 5 basis points (bps) lower than November, while the 15-year rate declined 3 bps to 5.48%, according to Freddie Mac. Compared to a year ago, the 30-year rate is lower by around half a percentage point, or 53 bps. The 15-year rate is also lower by 45 bps.
The 10-year treasury yield averaged 4.12% in December, up 2 bps from November 2025, as labor market data recently released pointed to slowing job gains and rising unemployment rate.
Lower mortgage rates have caused existing home sales to increase slightly, although mortgage rates above 6% are still considered high. According to the National Association of Home Builders (NAHB), a 25 bps reduction in the 30-year mortgage rate, from 6.25% to 6.00%, could bring approximately 1.1 million additional households back into the buyer pool. By 2027, NAHB estimates the 30-year mortgage rate to reach 6%.
