U.S. mortgage rates edged up in late December 2025 but stayed near 6.5%, supporting housing demand despite affordability challenges.

U.S. long-term mortgage rates rose slightly in late December 2025 but held near their lowest level of the year, remaining historically low and supporting housing market demand. Despite minor increases, rates stayed around 6.5%, aided by moderate inflation, steady job growth, and the Federal Reserve’s cautious interest rate policy. Homebuyers and refinancers continued to benefit from favorable financing, though affordability remains a challenge in high-cost areas. Market stability persists, with expectations of potential rate cuts in early 2026 if inflation trends improve.