A cooling labor market reported this week with unemployment rising slightly, while in line with expectations, did little to move mortgage rates, economists report.
The latest Primary Mortgage Market Survey® (PMMS®), released by Freddie Mac Thursday, shows the 30-year fixed-rate mortgage (FRM) averaging 6.21%, a slight decline of one basis point from last week’s rate average of 6.22%.
“The average 30-year fixed-rate mortgage has remained within a narrow 10-basis point range over the last two months,” said Sam Khater, Freddie Mac’s chief economist. “With rates down half a percent over last year, purchase applications are 10 percent above the same time one year ago.”
Realtor.com Senior Economic Research Analyst Hannah Jones said this week’s Consumer Price Index (CPI) report, which showed better-than-expected inflation numbers at 2.7%, “could take some pressure off of mortgage rates and, alongside labor market conditions, will play a key role in shaping the Federal Reserve’s rate cut decisions.
“With the end of the year in sight, home shoppers are in a more favorable position than they were a year ago,” Jones added. “Mortgage rates have eased into the low-6% range and inventory remains well above last year’s levels, giving buyers more options and greater flexibility.”
At a glance:
- The 30-year FRM averaged 6.21% as of December 18, 2025, down slightly from last week when it averaged 6.22%. A year ago at this time, the 30-year FRM averaged 6.72%.
- The 15-year FRM averaged 5.47%, down from last week when it averaged 5.54%. A year ago at this time, the 15-year FRM averaged 5.92%.
For more analysis by Freddie Mac, click here.
