Mortgage Rates Edge Higher Amid Persistent Low-Term Environment

Average 30-year fixed mortgage rates increased by five basis points to 6.85% during the week ending December 10, 2025, according to national data. This marks the second consecutive weekly rise after a period of stability, though rates remain firmly within the range of year-to-date lows. The benchmark rate has fluctuated between 6.75% and 6.85% since early November, indicating continued market stabilization. The recent rise comes amid mixed signals from economic indicators. Inflation data released earlier in the week showed core PCE prices rising 2.8% year-over-year, slightly above expectations, which may have contributed to investor caution. However, labor market strength and resilient consumer spending have kept expectations for Federal Reserve rate cuts in 2026 largely intact. Despite the modest climb, mortgage rates remain 38 basis points below the 7.23% peak reached in January 2024. This environment continues to support homebuyers seeking favorable financing, particularly in markets with strong inventory and competitive pricing. Refinancing activity saw a modest uptick, with applications rising 4% week-over-week, signaling renewed interest among homeowners looking to lock in lower rates. The housing sector remains sensitive to rate movements. Analysts note that while the current level is still relatively accessible for first-time buyers, any sustained increase above 7.0% could dampen demand. Lenders and real estate brokers are closely monitoring mortgage spreads and Treasury yields, which remain a key driver of mortgage rate behavior.