Mortgage Rates Hold Steady Heading Into December 2025

Mortgage rates are holding near 6.37% as we move into December 2025, offering a measure of stability after years of volatility. According to HousingWire, the average 30‑year fixed rate dipped slightly from the prior week, with FHA loans averaging 6.15% and jumbo loans at 6.20%. This plateau is giving buyers and sellers alike a clearer sense of the market, even as affordability remains tight compared to pre‑pandemic levels.

Why Rates Matter Now

Markets are anticipating another Federal Reserve rate cut in December, which could nudge mortgage rates closer to the low‑6% range. For buyers, that shift could improve affordability and spark renewed demand. For sellers, it means more buyers may re‑enter the market, but they’ll remain price‑sensitive and focused on value.

Housing Market Response

• Existing home sales rose 1.2% in October, showing modest momentum.

• Pending sales and purchase applications have also ticked up, reflecting buyer confidence in a more predictable rate environment.

• Inventory remains tight, but homes that are priced strategically and presented well are attracting multiple offers.

What This Means for Santa Cruz

For sellers, this is a window to list strategically. Conservative pricing creates urgency and competition, often leading to stronger offers above asking. For buyers, steady rates mean predictability—though if the Fed cuts in December, competition will likely intensify.

Bottom line: Mortgage rates hovering near 6.37% are giving the housing market a breather. If the Fed delivers another cut, we could see a stronger finish to 2025 and a more active start to 2026. Preparation, presentation, and pricing remain the keys to success in Santa Cruz’s competitive market.

-Neil Pierson, Housingwire, November 25, 2025