Freddie Mac’s last mortgage report of 2025
Earlier this week on New Year’s Eve saw the average mortgage rate hit its lowest level of the year, a positive sign for home shoppers as the holiday season comes to a close and eyes turn toward 2026’s peak buying season in the months ahead.
Freddie Mac’s last mortgage report of 2025 released earlier this week on New Year’s Eve saw the average mortgage rate hit its lowest level of the year, a positive sign for home shoppers as the holiday season comes to a close and eyes turn toward 2026’s peak buying season in the months ahead.
What’s in Store?
“After starting the year close to 7%, the average 30-year fixed-rate mortgage moved to its lowest level in 2025 this week, an encouraging sign for potential homebuyers heading into the new year,” said Sam Khater, Freddie Mac’s chief economist.
Realtor.com Senior Economist Joel Berner commented, “This marks the lowest readout of 2025, a year in which rates averaged 6.6%. The yield on the 10-Year Treasury Note has softened during this holiday season, giving mortgage rates a bit of breathing room at year’s end. There is little indication that the Federal Reserve will make any major changes to interest rates in January, and the market is responding favorably to a period of relative stability.”
Berner noted that affordability was the primary constraint on the housing market in 2025, with mortgage rates landing in the mid-6% range for most of the year and home-price growth seeing its weakest reading in two years, which kept many buyers on the sidelines. But, he added that rates have retreated in a meaningful way during the second half of the year and are on track to make 2026 a year of rebound for the housing market.
“If this momentum continues into the peak buying season of 2026, we could see much stronger sales figures than we saw for much of 2025. Already, pending home sales have responded to the relief from mortgage rates and are helping the market to pick up steam through what is traditionally the slowest part of the year.”
At a glance
- The 30-year FRM averaged 6.15% as of December 31, 2025, down from last week when it averaged 6.18%. A year ago at this time, the 30-year FRM averaged 6.91%.
- The 15-year FRM averaged 5.44%, down from last week when it averaged 5.50%. A year ago at this time, the 15-year FRM averaged 6.13%.
Per US News and World Report on 1/5/2026: January Could Be a Good Time to Buy
Mortgage Rates Drop to Start Off 2026 | Mortgages | U.S. News
Homebuying activity tends to slow in the winter months, often due to weather-related constraints. Winter is generally not an optimal time to show off curb appeal, and so many sellers opt to wait until spring to list their homes.
In November, total U.S. housing inventory fell 5.9% from October, according to the National Association of Realtors. And as Lawrence Yun, the group’s chief economist, said in a release, “Inventory growth is beginning to stall. With distressed property sales at historic lows and housing wealth at an all-time high, homeowners are in no rush to list their properties during the winter months.”
Despite the challenge of limited inventory, January could prove a strategic time to make a home purchase. There’s generally less competition from buyers, especially since parents of school-age children are often loath to make a move in the middle of a school year. At the same time, child-free buyers could opt to sit out this month in anticipation of mortgage rates falling further or due to other financial priorities.
Given a recent dip in mortgage rates, albeit a modest one, it may not be a bad idea to see what’s out there this January. While inventory could pick up in the spring, so could competition. Buyers who are able to make an offer this month may find themselves with more negotiating power, allowing them to lock in lower purchase prices.
Do you need real estate services?
Contact Us!
Contact our offices in Pottstown or Collegeville!
Collegeville: 610-489-5900
Pottstown: 610-326-1200
OR through our social media pages!
Facebook and Instagram at “REMAXAchieversAgentsinPA”
Instagram:
Facebook:
https://www.facebook.com/SouthEasternPARealEstateSalesAgents
How RE/MAX Achievers Can Help You!
With talented and award-winning realtors, years of experience, and thousands of happy customers, you know that you can trust RE/MAX Achievers with all your home needs! Whether you’re buying or selling in or around the Royersford real estate market, RE/MAX Achievers is here to help. We know more than anybody the stress that comes with the Birdsboro real estate market, and we don’t want you to face it alone! Everybody deserves the home they love, and we want to help you find it!
RE/MAX Achievers sold over $1 Billion Dollars in real estate during the last 5 years! RE/MAX was voted 2024’s number one real estate brand. RE/MAX Achievers Broker/Owner, John E. Ohler has stated he “is so proud of our accomplishments thanks to the surrounding communities. RE/MAX is a household name!” RE/MAX Achievers was awarded the 2022 RE/MAX President Club Award and the 2022, 2021, 2020, 2019, 2018 RE/MAX Achievement of Excellence Award! RE/MAX was voted the 2024, 2023, 2022 MOST Trusted Real Estate brand and agents. RE/MAX Achievers offers real estate services in 5 counties: Montgomery, Chester, Berks, Bucks and Philadelphia counties. There’s truly nobody more fit to help you with buying a home in the Birdsboro, Berks County real estate market.
Don’t stress about buying or selling a home in the Birdsboro, Berks County real estate market! Call the Achievers today!
#1021AllenRoadBirdsboroPendingSettlement #RemaxHustle #GetSoldByRemax #Justlisted #REMAXAchieversrealestate #AwardWinningAgents #Remaxisthebest #RemaxSells #JustSoldbyREMAXAchievers #REMAX #RealEstateInvestments #REMAXAchieversAgentsinPA #HomesforSaleREMAXAchieversPA #REMAX #REMAXAchievers #REMAXrentals #AchieversPA #JustSoldbyREMAXAchievers #REMAX #mortgageprequalified #mortgagepreapproval #REMAXSellsMontgomeryCountyHomesForSale #Remaxachieverspa #Achieversfamily #Ourrealestatefamily #remax #remaxhustle #realestate #callremax #realty #broker #forsale #newhome #newconstruction #househunting #property #realestate #investment #home #housing #mortgage #foreclosure #selling #justlisted #justsold #openhouse #PArealestate #Homeforsale #firsttimehomebuyer #Chestercountyrealestate #realestateinvestment #MainLinerealestate #MainLinehomeforsale #DelawareCountyrealestate #remaxachievers #justlisted #HistoricHomeforsale #MontgomeryCountyhomeforsale #MontgomeryCountyrealestate #Phoenixvillehomeforsale #SoldByREMAX #Pottsgrovehomeforsale #Collegevillehomeforsale #BuyinCollegeville #Collegevillerealestate #Phoenixvillerealestate #soldinoneday #chestercountyrealestatemarket #soldinfivedays #remaxjustsold #REMAXhustle #REMAXopenhouse #remaxachienvers #remaxrealestate #MainLinerealestate #JustListedbyREMAXAchieversPA #Collegeville #chestercountyrealestate #soldfast #BuyingCollegeville #Collegevillerealestate #Schwenksvillerealestatemarket #Schwenksvillehomesforsale #SchwenksvillePArealestate #justsoldbyremaxachievers #homeforsaleinRoyersfordPA #HomeforsaleSpringfordschooldistrict #Springfordschooldistrict #Royersfordhomseforsale #Pottstownhomesforsale #Birdsborohomesforsale #Douglassvillehomesforsale #Limerickhomesforsale #Stowehomesforsale #Skippackhomesforsale #OwenJRobertsSchoolDistrict #PerkiomenValleySchoolDistrict #BoyertownhomesforSale #BuyHome #CondosforSale #RealEstateMarketTrends #Appraisal #Townhomesforsale #Appraisal #Buyingahouse #FHALoans #House4Sale #RealEstateAgent
