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U.S. Housing Market Ends 2025 With Mortgage Rates at 6.15% as Price Growth Cools

Falling mortgage costs are nudging activity higher for buyers facing persistent down-payment constraints.

Overview

  • Freddie Mac reports the average 30-year fixed rate at 6.15%, the year’s low, with 15-year loans at 5.44%.
  • S&P CoreLogic Case-Shiller shows October national prices up 1.4% year over year, with real values trailing inflation and sharp metro splits: Chicago up 5.8% versus Tampa down 4.2%, with Phoenix and Dallas also negative.
  • Market activity is thawing as active listings run about 12% higher than a year ago and pending home sales rose 3.3% from October and 2.6% from a year earlier in November, according to NAR.
  • First-time buyers remain squeezed: they accounted for roughly 21% of sales from July 2024 to June 2025, the median first-time buyer age is 40, and the typical down-payment saving timeline is about seven years.
  • Forecasters see 2026 as a stabilization year with modest national price gains of roughly 1%–2.5% and mortgage rates staying mostly above 6%, while builders in some markets use price cuts and incentives to move new inventory.