Mortgage Interest Rates Today: Mortgage Rates Inch Up to 6.22% After Fed’s Third-Straight Cut

Mortgage rates moved up slightly on Thursday but stayed within a narrow range as markets reacted to the Federal Reserve widely anticipated decision to lower its benchmark interest rate for the third consecutive time this year.

The average rate on 30-year fixed home loans rose to 6.22% for the week ending Dec. 11, up from 6.19% the week before, according to Freddie Mac. Rates averaged 6.60% during the same period in 2024.

"The average 30-year fixed-rate mortgage is well below the year-to-date average of 6.62%, providing some sense of balance to the housing market," says Sam Khater, Freddie Mac's chief economist.

Treasury yields moved modestly lower after the Fed's divided policymakers voted 9-3 at the Federal Open Market committee (FOMC) meeting on Wednesday to reduce the federal funds rate by a quarter of a point.

In the wake of the vote, the 10-year yield edged toward the low-4% range, helping keep mortgage rates near their lowest levels in more than a year. 

"That steadiness comes despite lingering uncertainty around economic data, much of which remains delayed following the recent government shutdown," says Realtor.com® senior economist Anthony Smith. 

While the Fed's 25 basis point cut brings the federal funds rate down to a range of 3.5% to 3.75%—the lowest since 2022—the policy move itself is not a direct catalyst for lower mortgage rates. 

Instead, markets are focused on the Fed's updated economic projections and the growing division among the central bank's decision makers, with Kansas City Fed President Jeffrey Schmid and Chicago Fed President Austan Goolsbee voting against another cut, and Fed Gov. Stephen Miran supporting a larger half-point rate reduction.

"Current conditions suggest that FOMC members expect rates may now be near a neutral level, future cuts could require more evidence of economic cooling," says Smith. "As a result, mortgage rates may remain range-bound in the low 6% area rather than falling sharply."

The Realtor.com 2026 Housing Forecast anticipates mortgage rates will remain broadly in line with current levels in 2026, averaging 6.3%. 

"While this is unlikely to deliver the sharp relief some buyers are hoping for, rates are expected to be low enough to help counterbalance continued, but modest, home price growth," explains the economist. "This dynamic is expected to lower the typical monthly cost of homeownership in 2026 for the first time since 2020, with affordability improving as rising incomes bring the share of earnings needed to purchase a median-priced home back below the 30% threshold."

Overall, the housing market appears poised for gradual improvement rather than a dramatic turnaround, marked by stable mortgage rates, better affordability, and steadily expanding inventory that should boost home sales next year.

"Still, near-term volatility remains possible as markets digest incomplete economic data and look to upcoming Fed communications for clarity on the pace and extent of future policy easing," cautions Smith. 

How mortgage rates are calculated

Mortgage rates are determined by a delicate calculus that factors in the state of the economy and an individual’s financial health. They are most closely linked to the 10-year Treasury bond yield, which reflects broader market trends, like economic growth and inflation expectations. Lenders reference this benchmark before adding their own margin to cover operational costs, risks, and profit.

When the economy flashes warning signs of rising inflation, Treasury yields typically increase, prompting mortgage rates to go up. Conversely, signs of falling inflation or weakness in the labor market usually send Treasury yields lower, causing mortgage rates to fall.

The mortgage rates you’re offered by a lender, however, go beyond these benchmarks and take some of your personal factors into account.

Your lender will closely scrutinize your financial health—including your credit score, loan amount, property type, size of down payment, and loan term—to determine your risk. Those with stronger financial profiles are deemed as lower risk and typically receive lower rates, while borrowers perceived as higher risk get higher rates.

How your credit score affects your mortgage

Your credit score plays a role when you apply for a mortgage. A credit score will determine whether you qualify for a mortgage and the interest rate you'll receive. The higher the credit score, the lower the interest rate you'll qualify for.

The credit score you need will vary depending on the type of loan. A score of 620 is a "fair" rating. However, people applying for a Federal Housing Administration loan might be able to get approved with a credit score of 500, which is considered a low score.

Homebuyers with credit scores of 740 or higher are typically considered to be in very good standing and can usually qualify for better rates.

Different types of mortgage loan programs have their own minimum credit score requirements. Some lenders have stricter criteria when evaluating whether to approve a loan. They want to make sure you're able to pay back the loan.