Mortgage Interest Rates Today: Mortgage Rates Tick Down to 6.21% After Weak Jobs Report

Mortgage rates inched down slightly on Thursday but remained largely steady as markets absorbed the delayed November jobs report, which showed that the national unemployment rate climbed to a four-year high. 

The average rate on 30-year fixed home loans decreased to 6.21% for the week ending Dec. 18, down from 6.22% the week before, according to Freddie Mac. Rates averaged 6.72% during the same period in 2024.

"The average 30-year fixed-rate mortgage has remained within a narrow 10-basis point range over the last two months," says Sam Khater, Freddie Mac's chief economist. "With rates down half a percent over last year, purchase applications are 10% above the same time one year ago."

The latest jobs report released Tuesday by the Labor Department, which included the November figures as well as some data from October that was missed because of the recent federal government shutdown, pointed to a weakening labor market, with the unemployment rate rising 0.2 percentage points to 4.6%, the highest since September 2021. 

Realtor.com® Senior Economic Research analyst Hannah Jones points out that the slowdown largely aligned with expectations and did not trigger major swings in 10-year Treasury yields, which mortgage rates tend to track closely.

The report showed that 64,000 jobs were created last month after more than 100,000 jobs were lost in October. 

However, Federal Reserve Chair Jerome Powell said last week that the central bank believe federal data could be overestimating labor market expansion by as many as 60,000 jobs a month. If confirmed, future revisions could erase November's reported gains.

In more positive news, the latest Consumer Price Index (CPI) data released Thursday morning indicated that inflation cooled expectedly last month, with overall prices rising 2.7% in the last 12 months through November—less than economists had predicted. 

This easing of inflation is expected to give consumers struggling with elevated prices on basic necessities a welcome break, while also potentially paving the way to lower mortgage rates in the near future.

"With the end of the year in sight, home shoppers are in a more favorable position than they were a year ago,” says Jones. "Mortgage rates have eased into the low-6% range, and inventory remains well above last year’s levels, giving buyers more options and greater flexibility."

But while easing housing costs have reduced some pressure on U.S. households, affordability has not fully recovered. 

"We expect these trends to carry into 2026, as gradually lower mortgage rates bring typical housing payments down modestly and help restore some affordability," adds Jones. 

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.