The average rate on a 30-year U.S. mortgage edged higher this week, though it remains relatively near its low point so far this year.
The uptick brings the average long-term mortgage rate to 6.22% from 6.19% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.6%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also rose this week. The rate averaged 5.54%, up from 5.44% last week. A year ago, it averaged 5.84%, Freddie Mac said.
Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.
The 10-year yield was at 4.12% at midday Thursday, slightly higher than it was a week ago.
The rise in mortgage rates comes a day after the Federal Reserve cut its main interest rate for the third time this year and indicated another cut may be ahead in 2026.
The Fed doesn’t set mortgage rates, so even when it cuts its short-term rates that doesn’t necessarily mean rates on home loans will necessarily decline.
That's what happened last fall after the central bank cut its main rate for the first time in more than four years. Instead of falling, mortgage rates marched higher, eventually cresting above 7% in January this year. At that time, the 10-year Treasury yield was climbing toward 5%.
Mortgage rates began declining this summer ahead of the central bank’s September rate cut, its first in a year. The average rate on a 30-year mortgage got as low as 6.17%, the lowest level in more than a year, on Oct. 30.
That pullback in rates helped lift sales of previously occupied U.S. homes in October on an annual basis for the fourth straight month.
Still, affordability remains a challenge for many aspiring homeowners, especially first-time buyers who don’t have equity from an existing home to put toward a new home purchase. Uncertainty over the economy and job market are also keeping many would-be buyers on the sidelines.
The overall decline in mortgage rates this fall has been a boon for homeowners eager to refinance their home loan to a lower rate.
Applications for mortgage refinancing loans jumped 14% last week from the previous week, and accounted for about 58% of all home loan applications, according to the Mortgage Bankers Association. Applications for loans to buy a home climbed nearly 5%.
Economists generally forecast that the average rate on a 30-year mortgage will remain slightly above 6% next year.
“While this is unlikely to deliver the sharp relief some buyers are hoping for, rates are expected to be low enough to help counterbalance continued, but modest, home price growth,” said Anthony Smith, senior economist at Realtor.com.
FILE - A sign is posted for a new home for sale in Ambler, Pa., Thursday, Oct. 16, 2025. (AP Photo/Matt Rourke, File)
The “Architects of AI” were named Time's person of the year Thursday, with the magazine citing 2025 as when the potential of artificial intelligence “roared into view” with no turning back.
“For delivering the age of thinking machines, for wowing and worrying humanity, for transforming the present and transcending the possible, the Architects of AI are TIME’s 2025 Person of the Year,” Time said in a social media post.
The magazine was deliberate in selecting people — the “individuals who imagined, designed, and built AI” — rather than the technology itself, though there would have been some precedent for that.
“We’ve named not just individuals but also groups, more women than our founders could have imagined (though still not enough), and, on rare occasions, a concept: the endangered Earth, in 1988, or the personal computer, in 1982,” wrote Sam Jacobs, the editor-in-chief, in an explanation of the choice. “The drama surrounding the selection of the PC over Apple’s Steve Jobs later became the stuff of books and a movie.”
One of the cover images resembling the “Lunch Atop a Skyscraper” photograph from the 1930s shows eight tech leaders sitting on the beam: Meta CEO Mark Zuckerberg, AMD CEO Lisa Su, Tesla CEO Elon Musk, Nvidia CEO Jensen Huang, OpenAI CEO Sam Altman, the CEO of Google’s DeepMind division Demis Hassabis, Anthropic CEO Dario Amodei and AI pioneer Fei-Fei Li, who launched her own startup World Labs last year.
Another cover image shows scaffolding surrounding the giant letters “AI” made to look like computer componentry.
Five of the eight people selected — Musk, Zuckerberg, Huang, Altman and Su — are already billionaires with a collective fortune of $870 billion, based on the latest estimates compiled by Forbes magazine. Much of the wealth has been accumulated during the past three years of AI fever.
It made sense for Time to anoint AI because 2025 was the year that it shifted from “a novel technology explored by early adopters to one where a critical mass of consumers see it as part of their mainstream lives,” Thomas Husson, principal analyst at research firm Forrester, said by email.
The magazine noted AI company CEOs' attendance at President Donald Trump's inauguration this year at the Capitol as a herald for the prominence of the sector.
“This was the year when artificial intelligence’s full potential roared into view, and when it became clear that there will be no turning back or opting out,” Jacobs wrote.
Some experts expressed caution over the AI boom and the race to develop increasingly powerful systems.
“Leading AI companies are working feverishly to replace humans in every facet of life, and they’re not being shy about it,” said Anthony Aguirre, executive director of the nonprofit Future of Life Institute, which works on AI safety issues. “The impact on our society could be catastrophic if there are no guardrails protecting what’s human, and most important to us.”
AI was a leading contender for the top slot, according to prediction markets, along with Huang and Altman. Pope Leo XIV, the first American pope whose election this year followed the death of Pope Francis, was also considered a contender, with Trump, Israeli Prime Minister Benjamin Netanyahu and New York Mayor-elect Zohran Mamdani topping lists as well.
After winning his second bid for the White House, Trump was named 2024's person of the year by the magazine, succeeding Taylor Swift, who was the 2023 person of the year.
The magazine was bought by Marc Benioff in 2018. Benioff, one of the co-founders of cloud-computing firm Salesforce, has called AI “probably the most important” technological wave of his lifetime. He has repeatedly said he doesn't get involved in Time's editorial decisions.
The magazine's selection dates from 1927, when its editors have picked the person they say most shaped headlines over the previous 12 months.
Associated Press writers Matt O'Brien in Cupertino, California, Kelvin Chan in London, and Michael Liedtke in San Ramon, California, contributed to this article.
TIME CEO Jessica Sibley is interviewed on the floor of the New York Stock Exchange, adjacent to TIME's "Person of the Year" cover, Thursday, Dec. 11, 2025. (AP Photo/Richard Drew)
TIME CEO Jessica Sibley, second from right, joined by OpenAI Chief Global Affairs Officer Chris Lehane, second left, rings the New York Stock Exchange opening bell for TIME's "Person of the Year," Thursday, Dec. 11, 2025. (AP Photo/Richard Drew)
A sign for Time magazine is displayed outside the New York Stock Exchange on Thursday, Dec. 11, 2025 in New York. (AP Photo/Donald King)
