30-Year Fixed Mortgage Rate Rises to 6.22% Amid Economic Uncertainty

The national average rate for a 30-year fixed mortgage rose to 6.22% in the latest weekly data, up from 6.18% the prior week. This marks the first consecutive weekly increase since mid-November, signaling a potential turnaround in the downward trend seen earlier in the year. The rise comes amid mixed economic signals, including resilient inflation data and stronger-than-expected job growth, which have kept Federal Reserve policy expectations on hold. The 15-year fixed rate also edged up to 5.61%, from 5.57%, indicating broader pressure across the mortgage market. With mortgage rates now above 6% for the first time since early 2023, affordability continues to decline. According to recent housing data, the median home price in the U.S. stands at $425,000, meaning a typical 30-year loan would require monthly payments of approximately $2,550—up nearly 18% compared to the same period last year. Homebuyers, particularly first-time buyers, are feeling the strain. The National Association of Realtors reported that existing home sales declined 4.2% in November, the steepest drop in three months. Refinancing activity has also plunged, with applications down 63% year-over-year, as borrowers avoid locking in higher rates for new loans. The shift has significant implications for the housing market’s pace and affordability. Builders are adjusting to lower demand, with new housing starts falling 3.8% in November, the third consecutive monthly decline. Analysts warn that sustained rates above 6% could further cool the market, potentially leading to inventory corrections and price stabilization in the coming quarters.