Mortgage rates end 2025 at fresh low, giving buyers an 'encouraging sign' into new year

Core Insights - Mortgage rates have reached a new low for 2025, with the average 30-year mortgage rate at 6.15% and the 15-year rate at 5.44%, providing potential homebuyers with renewed momentum as they approach 2026 [1][2]. Group 1: Mortgage Rate Trends - The average 30-year fixed-rate mortgage started the year near 7% but has now dropped to its lowest level in 2025, indicating a positive shift for homebuyers [3]. - Mortgage rates have shown a significant decline in the second half of the year, stabilizing around 6.2% since mid-September, which has encouraged more buyers and sellers to enter the market [2][4]. Group 2: Market Activity and Predictions - Housing contract activity saw an unexpected increase of over 3% in November, suggesting that lower mortgage rates are beginning to improve market conditions [3]. - Economists predict that mortgage rates will average around current levels in the coming year, with modest home price growth, potentially aiding the recovery of the housing market [4]. - If the current momentum continues into the peak buying season of 2026, stronger sales figures are anticipated compared to much of 2025 [5].