Average US long-term mortgage rate edges higher but remains near 2025 low

Mortgage Rates Overview - The average rate on a 30-year U.S. mortgage increased to 6.16%, slightly up from 6.15% last week, and down from 6.93% a year ago [1][2] - The average rate on 15-year fixed-rate mortgages rose to 5.46% from 5.44% the previous week, compared to 6.14% a year ago [2] Influencing Factors - Mortgage rates are influenced by the Federal Reserve's interest rate policy, bond market expectations for the economy and inflation, and generally follow the trajectory of the 10-year Treasury yield [2][4] - The 10-year yield was at 4.17% at midday Thursday, with mortgage rates having been mostly steady since dropping to 6.17% on October 30, 2024 [3] Market Dynamics - The average rate on a 30-year mortgage ended last year nearly a percentage point lower than at the start of 2025, which helped boost home shoppers' purchasing power [5] - Despite lower mortgage rates, existing home sales in November slowed compared to the previous year for the first time since May, indicating a potential decline in sales for the year [6] Housing Affordability - The recent decline in mortgage rates has benefited home shoppers, with the median U.S. monthly housing payment falling to $2,365, a 4.7% decrease from the same period last year [7] - However, the housing market remains challenging for many potential homeowners, particularly first-time buyers, due to high home prices and stagnant wage growth [8]