Town Team December Mortgage Outlook: Calm Before the New Year?
- Zachary Schwartz
- Dec 5, 2025
- 3 min read
As we close out 2025, the mortgage market is entering a period of relative calm. After months of volatility driven by inflation reports, Federal Reserve decisions, and shifting housing demand, December is shaping up to be a month of stability. For buyers, sellers, and homeowners, this pause offers a chance to reassess strategies and prepare for the opportunities that 2026 may bring.
📉 Mortgage Rates: Holding Steady After Autumn Swings
30-Year Fixed Rates: After dipping in November, average rates have leveled off near their lowest point since early summer.
15-Year Fixed Loans: Shorter-term loans remain attractive, with rates consistently lower than 30-year options.
Adjustable-Rate Mortgages (ARMs): While ARMs saw renewed interest earlier this year, the current environment favors fixed-rate products.
🏡 Housing Inventory: More Choices for Buyers
Inventory is higher compared to last year, giving buyers more options and reducing bidding wars.
Seasonal Trends: Motivated sellers are keeping homes on the market longer, creating opportunities for buyers willing to act during the holidays.
Regional Differences: Suburban markets are seeing stronger inventory growth than urban cores.
🔮 The Fed’s Next Move: What to Expect in 2026
The Federal Reserve’s late October rate cut provided relief, but policymakers remain cautious. Inflation data scheduled for mid-December will be critical in shaping expectations for 2026.
👩💼 What This Means for Buyers
Negotiating Power: More inventory and fewer competing offers give buyers leverage.
Pre-Approval Advantage: A fully underwritten pre-approval from Town Team Mortgage sets you apart.
Timing Strategy: Acting now means avoiding the spring rush.
🔄 Refinancing Opportunities for Homeowners
Rate Comparison: Even a half-point drop can save hundreds per month.
Breakeven Analysis: Town Team Mortgage can help calculate recovery timelines.
Debt Consolidation: Refinancing can improve monthly cash flow.
🏠 Sellers: Standing Out in a Crowded Market
Pricing Realistically: Homes priced in line with comps move quickly.
Presentation Matters: Staging and professional photos make a difference.
Buyer Affordability: Factor in taxes, HOA dues, and insurance costs.
🎁 Holiday Market Tip
December may feel quiet, but serious buyers are still out there. Sellers can benefit from motivated offers, while buyers may find better deals with less competition.
✅ Holiday Homeowner Checklist
The holiday season is not just about celebrations; it’s also the perfect time to prepare your home and finances for the new year. Here’s a practical checklist to keep you ahead:
Winterize Your Home:
Check insulation and weatherstripping to reduce heating costs.
Service your furnace and replace filters.
Protect pipes from freezing with insulation or heat tape.
Budget for Property Taxes:
Many municipalities send tax bills in December. Review your escrow account or set aside funds to avoid surprises.
Review Insurance Coverage:
Confirm your homeowner’s policy covers winter risks like ice damage or burst pipes.
Update coverage if you’ve made renovations or added valuable items.
Plan for Spring Listing:
If you’re considering selling in 2026, use the winter months to tackle small repairs.
Declutter and organize now so your home is market-ready when spring buyers arrive.
Energy Efficiency Check:
Swap out holiday lights for LED options.
Schedule an energy audit to identify savings opportunities before peak winter bills hit.
Financial Tune-Up:
Review your mortgage statement and consider refinancing if rates are lower.
Set housing-related goals for 2026, whether it’s saving for a move, upgrading your current home, or paying down debt.
📌 The Bottom Line
December offers a rare moment of calm in the mortgage market. Rates are steady, inventory is up, and the Fed is in wait-and-see mode. Whether you’re buying, refinancing, or selling, now is the time to prepare for 2026 with confidence.
Town Team Mortgage is here to guide you through every step — from pre-approval to closing — ensuring you make the most of this unique market moment.
