Freddie Mac Mortgage Rates Drop to 6.60% in 2025 – Lowest Since May

Important Highlights

• The 30-year fixed mortgage rate has decreased to 6.60%, reversing a brief two-week rise and continuing its downward trend, according to Freddie Mac.
• The 15-year fixed mortgage rate has declined for the fifth consecutive week, reaching 5.76%.
• Both mortgage rates are now at their lowest levels since May 2023, offering renewed hope for buyers.

After a short period of increases, mortgage rates have resumed their decline this week, reaching their lowest levels since May. This trend is especially promising for prospective homebuyers seeking affordability in today’s competitive market.

Freddie Mac’s data reveals that the average 30-year fixed mortgage rate dropped from 6.66% last week to 6.60%, while the 15-year fixed mortgage rate fell from 5.87% to 5.76%, marking the fifth week of consecutive decreases.

Sam Khater, Chief Economist at Freddie Mac, commented, “This positive shift is encouraging for the housing market, particularly for first-time buyers who are highly sensitive to mortgage rate changes. However, as demand eases, the limited housing inventory may face increased pressure.”

There is optimism for increased housing supply as building permits rise, indicating more construction projects ahead. Additionally, housing starts in December showed a significant 7% increase compared to the previous year, signaling growth in new home availability.

The combination of lower mortgage rates and a strengthening home-building sector could significantly improve conditions for homebuyers navigating one of the most challenging and unaffordable markets in recent history.

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