Mortgage Rates Drop to 6.18%, Reports Freddie Mac
‘The Big Money Show’ panel analyzes the state of the housing market after mortgage rates fall to a one-year low.
Mortgage rates have seen another decline this week, as reported by mortgage buyer Freddie Mac on Wednesday.
According to Freddie Mac’s latest Primary Mortgage Market Survey, the average rate on the benchmark 30-year fixed mortgage has decreased to 6.18%, down from last week’s 6.21%. This marks a significant drop from the average rate of 6.85% recorded a year ago.
THESE 10 MARKETS MAY SEE THE BIGGEST HOMEBUYING SURGE AS MORTGAGE RATES FALL
Mortgage rates fell to 6.18% this week, according to Freddie Mac. (Patrick T. Fallon/AFP via Getty Images)
“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,” stated Realtor.com senior economist Jake Krimmel.
While mortgage rates are not directly influenced by the Federal Reserve’s interest rate decisions, they closely track the 10-year Treasury yield, which was around 4.14% as of Wednesday afternoon.
HOME DELISTINGS SURGE AS SELLERS STRUGGLE TO GET THEIR PRICE
On Tuesday, the Bureau of Economic Analysis released its initial estimate of third-quarter GDP, revealing an annualized growth rate of 4.3% for the three-month period encompassing July, August, and September. This figure surpassed economists’ expectations, who had predicted a 3.3% growth rate.
THE MARKETS WHERE HOMEBUYERS MAY FINALLY GET SOME RELIEF IN 2026, REALTOR.COM SAYS
Additionally, last week, the government released the latest inflation and employment figures. The Bureau of Labor Statistics reported that the consumer price index rose by 0.2% in November from the previous month, with a year-over-year increase of 2.7%. Both figures were lower than economists’ expectations, which projected a 0.3% monthly rise and a 3.1% year-over-year figure.
Furthermore, the Labor Department announced that employers added 64,000 jobs in November, while the unemployment rate rose to 4.6%, the highest level since September 2021.
Meanwhile, the average rate on a 15-year fixed mortgage increased slightly to 5.5%, up from last week’s 5.47%.
The average rate on a 15-year fixed mortgage rose to 5.5% from last week’s reading of 5.47%. (David Paul Morris/Bloomberg via Getty Images)
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Krimmel noted that inventory levels are higher than last year in most markets, suggesting that buyers will enter the new year with a more favorable rate environment compared to the 2025 spring season. He stated, “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 added, “It won’t take much improvement from here for 2026 to feel like a step forward after two slow housing years.”
‘The Big Money Show’ panel analyzes the state of the housing market after mortgage rates fall to a one-year low.
Mortgage rates have seen another decline this week, as reported by mortgage buyer Freddie Mac on Wednesday.
According to Freddie Mac’s latest Primary Mortgage Market Survey, the average rate on the benchmark 30-year fixed mortgage has decreased to 6.18%, down from last week’s 6.21%. This marks a significant drop from the average rate of 6.85% recorded a year ago.
THESE 10 MARKETS MAY SEE THE BIGGEST HOMEBUYING SURGE AS MORTGAGE RATES FALL
Mortgage rates fell to 6.18% this week, according to Freddie Mac. (Patrick T. Fallon/AFP via Getty Images)
“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,” stated Realtor.com senior economist Jake Krimmel.
While mortgage rates are not directly influenced by the Federal Reserve’s interest rate decisions, they closely track the 10-year Treasury yield, which was around 4.14% as of Wednesday afternoon.
HOME DELISTINGS SURGE AS SELLERS STRUGGLE TO GET THEIR PRICE
On Tuesday, the Bureau of Economic Analysis released its initial estimate of third-quarter GDP, revealing an annualized growth rate of 4.3% for the three-month period encompassing July, August, and September. This figure surpassed economists’ expectations, who had predicted a 3.3% growth rate.
THE MARKETS WHERE HOMEBUYERS MAY FINALLY GET SOME RELIEF IN 2026, REALTOR.COM SAYS
Additionally, last week, the government released the latest inflation and employment figures. The Bureau of Labor Statistics reported that the consumer price index rose by 0.2% in November from the previous month, with a year-over-year increase of 2.7%. Both figures were lower than economists’ expectations, which projected a 0.3% monthly rise and a 3.1% year-over-year figure.
Furthermore, the Labor Department announced that employers added 64,000 jobs in November, while the unemployment rate rose to 4.6%, the highest level since September 2021.
Meanwhile, the average rate on a 15-year fixed mortgage increased slightly to 5.5%, up from last week’s 5.47%.
The average rate on a 15-year fixed mortgage rose to 5.5% from last week’s reading of 5.47%. (David Paul Morris/Bloomberg via Getty Images)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Krimmel noted that inventory levels are higher than last year in most markets, suggesting that buyers will enter the new year with a more favorable rate environment compared to the 2025 spring season. He stated, “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 added, “It won’t take much improvement from here for 2026 to feel like a step forward after two slow housing years.”
