Mortgage Rates Update December 2022: 30-Year Loans Rise Above 6.5%, Trends and Insights

The 30-year fixed mortgage rate has rebounded above 6.5% after a recent dip, signaling a slight upward trend in home loan costs as we approach the end of 2022.

Mortgage rates experienced a second consecutive day of increases on Monday, pushing the 30-year average rate up by nearly 0.2 percentage points from last week’s three-month low.

Current National Mortgage Rate Averages

Following a drop to 6.40% last Thursday, the 30-year mortgage rate has climbed back to 6.59% as of Monday, marking an 8-basis-point increase. Since early December, rates have fluctuated between 6.40% and 6.66%, remaining about one percentage point below the 20-year peak of 7.58% recorded in October.

The 15-year mortgage average also rose modestly by 4 basis points to 5.86%, still notably lower than its 7.03% peak in the fall, which was the highest in 15 years.

Jumbo 30-year mortgage rates increased by 0.125% on Monday to 5.77%, remaining about half a percentage point below their October high of 6.27%, a level unseen since 2010.

Refinancing rates for 30-year loans showed a sharper rise, jumping 19 basis points on Monday after a 28-point increase on Friday. The 15-year refinance average gained 8 basis points, while Jumbo 30-year refis increased by 12 points. Refinancing now costs approximately 0.60% more than purchasing a new 30-year mortgage.

After historic lows in August 2021, mortgage rates surged in early 2022, with the 30-year average reaching 6.38% in mid-June — nearly 3.5 percentage points above the 2021 summer trough of 2.89%. This autumn’s spike surpassed that peak by 1.2 percentage points, reaching new heights in late October.

Important Note

Displayed mortgage rates typically differ from advertised teaser rates, which often highlight the most attractive offers. These may require upfront points, assume borrowers with exceptional credit scores, or involve smaller loan amounts relative to home value.

Use our Mortgage Calculator to estimate monthly payments for various loan options.

Factors Influencing Mortgage Rate Changes

Mortgage rates are shaped by multiple macroeconomic and industry dynamics, including bond market trends—especially 10-year Treasury yields—the Federal Reserve’s monetary policies related to government-backed mortgages, and competition among lenders and loan types. Because these factors interact simultaneously, pinpointing a single cause for rate changes is challenging.

In 2021, mortgage rates remained relatively low, supported by the Federal Reserve’s bond-buying programs responding to pandemic-related economic challenges. This bond-buying, rather than the federal funds rate, significantly influenced mortgage rates.

Starting in November 2021, the Fed began tapering bond purchases, reducing them monthly until ceasing in March 2022.

The Federal Open Market Committee (FOMC), which sets policy, meets every six to eight weeks, with the next meeting scheduled to conclude on February 1.

Methodology

The national mortgage rate averages presented are calculated from the lowest rates offered by over 200 leading lenders nationwide, assuming an 80% loan-to-value ratio (LTV) and a borrower credit score between 700 and 760. These rates reflect realistic expectations for qualified applicants and may differ from advertised teaser rates.

For state-specific rates, the lowest currently available lender rate is listed under the same assumptions.

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