Mortgage Rates Drop to 6.69% as Home Prices Rise for First Time in 27 Weeks

Mortgage rates fell from 6.81% last week to 6.69% for a 30-year fixed home loan for the week ending Dec. 5, according to Freddie Mac.

“This week, mortgage rates decreased to their lowest level in over a month,” said Sam Khater, Freddie Mac’s chief economist, in a statement. “Despite just a modest drop in rates, consumers clearly have responded as purchase demand has noticeably improved.”

However, that sentiment did not hold true last week largely because this year’s Thanksgiving holiday came later than usual, falling on the 28th.

The delayed holiday “brought a stall to a U.S. housing market that continues to be burdened by high mortgage rates,” notes Realtor.com® senior economist Ralph McLaughlin in his analysis.

Yet high mortgage rates aren’t the only thing tamping down the housing market. Affordability remains a primary concern which “adds to the complications for prospective buyers,” says Realtor.com senior economist Joel Berner.

As buyers hold out for a dip in prices and rates, here’s a breakdown of the latest housing market data and what it means for homebuyers and sellers.

Mortgage rates on the move

Home prices spike

After months of steady prices or declines, the week ending Nov. 30 brought a subtle yet significant shift: The national median home listing price saw its first increase since the end of May.

The median listing price nudged up by 0.2% compared with last year. (Median home prices hit $416,880 in November.)

“This breaks a streak of 26 consecutive weeks where prices were either flat or declining,” says McLaughlin.

While the gain is modest, it may signal the beginning of a new trend in the housing market in the new year.

Housing stock is up

The number of homes actively for sale continued to grow, with buyers seeing 25.9% more homes for sale for the week ending Nov. 30 than last year.

“For the 56th consecutive week, the number of homes for sale has increased compared to the same time last year,” says McLaughlin. This gives homebuyers many more options.

However, this week’s growth was smaller than last week’s, marking the ninth consecutive week of deceleration. 

“Sluggish listing activity, combined with subdued buyer demand, has contributed to this slowdown in inventory growth,” says McLaughlin. “Sellers are holding back, and buyers are taking their time—creating a more balanced but tentative housing landscape.”

Meanwhile, fresh listings plummeted by a whopping 29% for the week ending Nov. 30 compared with the previous year. 

Thanksgiving had a lot to do with this reduction since, according to McLaughlin, “sellers are likely deciding to hold off listing their home until buyers are less occupied with their holiday festivities. “

The pace of home sales slows

Home sales were also sluggish over the long holiday weekend. The typical home spent nine more days on the market for the week ending Nov. 30 compared with last year. (The average home spent 62 days on the market last month—marking the slowest November in five years.)

For 23 straight weeks, homes have been on the market for at least five days longer than last year. 

However, the past four weeks have seen the most significant year-over-year slowdowns in the U.S. housing market since July 2023.

That’s partly because “buyers are seeing plenty of options but few that they can afford,” says Berner.