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Mortgage Rates Hold Near 2025 Lows After Fed Cut, Averaging 6.22%

Long-term mortgage pricing tracks bond yields, leaving only incremental relief from the Fed’s third 2025 cut.

Overview

  • Freddie Mac reports the 30‑year fixed rate at 6.22% for the week of Dec. 11, up from 6.19% a week earlier yet still near this year’s lows, with the 15‑year at 5.54%.
  • The Federal Reserve lowered the federal funds rate by 25 basis points to 3.50%–3.75%, its third cut of 2025, with the move largely anticipated by markets.
  • Mortgage pricing is keyed to the 10‑year Treasury, which slipped after the Fed meeting, keeping rates broadly range‑bound in the low‑6% area rather than dropping sharply.
  • Fed projections point to only one additional quarter‑point cut in 2026, and Chair Jerome Powell highlighted a housing supply ‘lock‑in’ as owners hold ultra‑low mortgages.
  • Consumers may see faster relief on credit cards, HELOCs and some ARMs, but experts urge careful review of ARM caps, reset schedules and any prepayment penalties.