The average rate on a 30-year U.S. mortgage dropped to its lowest level of 2025, at 6.15%. Borrowing costs for 15-year fixed-rate mortgages also fell to 5.44%. Mortgage rates are influenced by factors like the Federal Reserve’s interest rate decisions and investors’ economic expectations.

Home shoppers have seen more favorable conditions with lower mortgage rates, but affordability remains a challenge for first-time buyers. Home sales rose in November but are down 0.5% compared to last year. Economists predict that the average rate on a 30-year mortgage will stay slightly above 6% next year.

Read more at Yahoo Finance: Average US long-term mortgage rate falls to the lowest level of the year at 6.15%