One of the prevailing narratives in the mortgage world in 2025 was the rate lock-in effect. Interest rates remained stubbornly high throughout the year, keeping many homeowners anchored in place with lower-rate mortgages secured during the borrower-friendly heyday of the pandemic era.

But interest rate conditions did gradually improve as the year progressed, a trend highlighted by Freddie Mac Chief Economist Sam Khater in a press release accompanying the firm’s final weekly rate survey of 2025.

“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,” Khater commented Wednesday.

Specifically, the 30-year rate ended the year at 6.15%, according to Freddie Mac. The 15-year rate settled at 5.44%, which is three basis points higher than its weekly lows seen during the weeks of Sept. 18 and Oct. 30.

The 30-year and 15-year fixed rates reached their respective weekly peaks of 7.04% and 6.27% during the third week of January.

The 30-year rate ended the year 0.76% lower than the same week in 2024, while the 15-year rate was down 0.69%. The 52-week averages were 6.59% for the 30-year and 5.78% for the 15-year.

Overall, the general through line for the year was rates remaining tightly range-bound, as shown in the chart below:

Another theme that developed in 2025 was borrowers seizing the opportunity to refinance whenever slight rate relief emerged. This trend was particularly apparent in September, when a wave of refinance activity reached its highest crescendo since 2022, according to Optimal Blue data.

Looking ahead to 2026, the real estate listings platforms Zillow, Redfin and Realtor.com all expect rates to barely budge. The Mortgage Bankers Association is similarly inclined, forecasting average rates of 6.4% next year.

A notable outlier is Fannie Mae, the older sister of Freddie Mac among government-sponsored mortgage companies.

Fannie’s latest projection is that 30-year mortgage rates will average around 6% in 2026 and will end the year at 5.9%. While it’s a far cry from the mid-2% rates seen during the depths of the COVID-19 pandemic, sub-6% rates would be welcome news for lenders and borrowers in the new year.