Rising Mortgage Rates: Discover How Your Monthly Payment Could Shift!
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Key Takeaways
- This week, mortgage rates have taken another leap, fueled by the Fed’s revised approach to interest rates in 2025.
- The average rate for new 30-year fixed-rate mortgages climbed by 15 basis points, hitting 6.92%—marking a 39-point spike over the past fortnight.
- 15-year mortgage rates surged by 22 basis points, now averaging 6.12%—a significant 41-point rise in just two weeks.
- Jumbo 30-year rates added 12 basis points, averaging 6.87%—an overall 34-point increase in the last two weeks.
- This uptick means if you’re considering a loan of $200,000 to $600,000, expect your monthly payments to rise by $20 to $60 for a 30-year term.
- For jumbo loans, the monthly payment increase could fall between $64 and $96, depending on the amount borrowed.
Mortgage Rates Surge for a Second Week
After enjoying a period of easing rates in late November and early December, mortgage rates have surged in the past couple of weeks. The latest spike was triggered by the Federal Reserve’s recent announcement regarding their stance on interest rate cuts for 2025, indicating fewer cuts than previously anticipated.
As a result, rates for new purchase loans have seen increases of up to 27 basis points across most mortgage types. Here’s how they’ve changed week over week:
| Mortgage Type | Dec. 13 Average Rate | Dec. 20 Average Rate | 1-Week Change |
|---|---|---|---|
| 30-Year Fixed | 6.77% | 6.92% | +0.15% |
| FHA 30-Year Fixed | 6.28% | 6.28% | +0.00% |
| VA 30-Year Fixed | 6.19% | 6.43% | +0.24% |
| 20-Year Fixed | 6.70% | 6.88% | +0.18% |
| 15-Year Fixed | 5.90% | 6.12% | +0.22% |
| 10-Year Fixed | 5.77% | 6.04% | +0.27% |
| Jumbo 30-Year Fixed | 6.75% | 6.87% | +0.12% |
30-Year Mortgage Rates Jumped Again
The average rate for 30-year new purchase loans has jumped by 15 basis points this week, bringing it up to 6.92%—effectively reversing a previous three-week decline.
15-Year Mortgage Rates Gained More Than 20 Basis Points
The average 15-year mortgage rate has increased to 6.12%, a 22 basis point jump week over week—collectively rising by 41 points over the last two weeks.
Jumbo 30-Year Rates Added an Eighth of a Point
Jumbo 30-year loans saw a moderate increase of 12 basis points last week, now averaging 6.87%. Rates for these loans previously dipped as low as 6.24% in September.
What’s a Jumbo Loan?
A jumbo mortgage exceeds the conventional loan limits set by Fannie Mae and Freddie Mac, which in 2025 stands at $806,500 for most of the U.S., but can reach up to $1,209,750 in higher-cost areas.
Here’s How Much Monthly Payments Have Risen
Curious how the recent interest rate hikes affect your monthly mortgage payments? The tables below illustrate the changes for various loan amounts for 30-year, 15-year, and jumbo 30-year fixed-rate mortgages.
| Loan Amount | Dec. 13 > 6.77% | Dec. 20 > 6.92% | Change |
|---|---|---|---|
| $200,000 | $1,300 | $1,320 | $20 |
| $300,000 | $1,950 | $1,980 | $30 |
| $400,000 | $2,600 | $2,640 | $40 |
| $500,000 | $3,250 | $3,300 | $50 |
| $600,000 | $3,900 | $3,960 | $60 |
| Loan Amount | Dec. 13 > 5.90% | Dec. 20 > 6.12% | Change |
|---|---|---|---|
| $200,000 | $1,677 | $1,701 | $24 |
| $300,000 | $2,515 | $2,551 | $36 |
| $400,000 | $3,354 | $3,401 | $48 |
| $500,000 | $4,192 | $4,252 | $59 |
| $600,000 | $5,031 | $5,102 | $71 |
For jumbo 30-year mortgages, with loan amounts between $800,000 and $1.2 million, expect monthly payments to rise by $64 to $96, depending on the loan size.
| Loan Amount | Dec. 13 > 6.75% | Dec. 20 > 6.87% | Change |
|---|---|---|---|
| $800,000 | $5,189 | $5,253 | $64 |
| $900,000 | $5,837 | $5,909 | $72 |
| $1,000,000 | $6,486 | $6,566 | $80 |
| $1,100,000 | $7,135 | $7,223 | $88 |
| $1,200,000 | $7,783 | $7,879 | $96 |
How We Track Mortgage Rates
The average rates provided above are sourced from reliable data, assuming an 80% loan-to-value (LTV) ratio (meaning a down payment of at least 20%) and a credit score ranging between 680 and 739. These figures reflect what borrowers can expect when seeking quotes from lenders, although individual results may vary based on specific qualifications.
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