Interest Rates Rise and Loan Demands Fall as 2025 Closes

The average 30-year fixed-rate conforming mortgage increased to 6.38% this week as applications for loans fell just under 4% even after the Federal Reserve cut interest rates the week before.

Mortgages rose as analysts expect that the Federal Reserve will not cut in nearly as much as previously hoped in early 2026.

Nonetheless, on a year-over-year basis, loan applications were up 13%.

Unemployment reports showed an increase in unemployment as well.