Average U.S. long-term mortgage rate falls to the lowest level of the year at 6.15%

Core Insights - The average rate on a 30-year U.S. mortgage has decreased to 6.15%, the lowest level of 2025, down from 6.18% last week, and significantly lower than the 6.91% average a year ago [1] - The 15-year fixed-rate mortgage also saw a decline, falling to 5.44% from 5.50% the previous week, compared to an average of 6.13% a year ago [2] - The 10-year Treasury yield is currently at 4.14%, slightly down from 4.15% last week, indicating a stable mortgage rate environment [3] Mortgage Rate Influences - Mortgage rates are affected by the Federal Reserve's interest rate policies, bond market expectations regarding the economy and inflation, and generally follow the 10-year Treasury yield [2][4] - The Fed's recent rate cuts, which began in September, have contributed to the easing of mortgage rates since July [3][4] Market Conditions - Home listings have increased significantly compared to 2024, with many sellers lowering their asking prices as homes take longer to sell [5] - Despite the favorable mortgage rates, affordability remains a challenge for first-time buyers, compounded by economic uncertainty [6] Sales Trends - Sales of previously occupied homes rose in November compared to the previous month but showed a decline compared to the same period last year, marking the first slowdown since May [7] - Home sales are down 0.5% for the first 11 months of the year compared to the same timeframe last year, with forecasts suggesting that the average 30-year mortgage rate will remain slightly above 6% next year [7]