Page 17 - FDMAsia Jan/Feb 2026

MARKET BEATS 15
www.fdmasia.com | FDM ASIA JAN/FEB 2026

NAHB Anticipates 30-Year declined during the week preceding the Federal Reserve’s third

Mortgage Rate To Average rate cut of the year. However, compared to the prior month,
yields ended slightly higher, rising two bps, as labour market
6.17% In 2026 data released shortly thereafter pointed to slowing job gains

and rising unemployment rate.
Long-term mortgage rates have been declining since mid-2025 Falling lower mortgage rates have started to translate into

and ended the year at their lowest level since September 2024. gains as existing home sales edged up slightly in November
According to Freddie Mac, the 30-year fixed-rate mortgage 2025. However, this increase remains limited as mortgage
averaged 6.19 percent in December 2025, five basis points rates above 6 percent are still considered elevated.
(bps) lower than November 2025. Meanwhile, the 15-year rate Nonetheless, as financing costs continue decline, more
declined three bps to 5.48 percent. households are likely to re-enter the housing market.
Compared to a year ago, the 30-year rate is lower by An National Association of Home Builders (NAHB)
about half a percentage point, or 53 basis points (bps). The analysis shows that a 25 bps reduction in the 30-year
15-year rate is also lower by 45 bps. mortgage rate, from 6.25 percent to six percent, could
The 10-year Treasury yield, a key benchmark for long- bring approximately 1.1 million additional households back

term borrowing, averaged 4.12 percent in December 2025—a into the buyer pool.
modest increase of two bps from the previous month. NAHB expects the 30-year mortgage rate to average 6.17
Given forward-looking markets, the 10-year Treasury yield percent in 2026 and to reach 6 percent by 2027.

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