Mortgage rates ended 2024 with a bang – but not the kind that’s good for borrowers. And for anyone in the market for a home – or a refinance – 2025 may not be much kinder.

In the week ending Dec. 26, the 30-year fixed-rate mortgage averaged 6.85%, mortgage guarantor Freddie Mac said Thursday. The popular loan product averaged 6.72% throughout the year, compared to 6.81% throughout 2023, even as the Federal Reserve cut its benchmark interest rate three times in 2024.

It’s not surprising that mortgage rates haven’t followed bank interest rates downward. As USA TODAY has previously reported, rates for home loans take their cue from the bond market, which the Fed does not directly influence.

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