December 2025 Mortgage Bulletin
Presented by LaPorte Group Mortgage – Jackson, Minnesota
As we close out 2025, interest rates continue to show signs of stabilization heading into the winter market. Buyers and homeowners are watching closely as year-end economic data, holiday spending levels, and employment numbers all play a role in shaping the housing and mortgage landscape.
Here is what you need to know this month:
Interest Rate Trends – December 2025
Mortgage rates have edged slightly downward, hovering in the low-6 percent range for qualified buyers.
Many lenders are offering rate specials, temporary buydowns, and reduced fees heading into year-end.
Refinance inquiries continue to increase as homeowners look to lower payments before the new year.
FHA, VA, and USDA programs remain strong options for first-time or lower-down-payment buyers.
Rates vary based on credit score, debt-to-income ratio, down payment, and property type.
Winter Homebuying Season
Even though it is December, the market has not cooled as much as expected.
Inventory remains low, keeping property values steady across Minnesota and Iowa.
Sellers listing in December are often motivated, giving buyers more negotiating room.
With fewer competing buyers, winter can be a strategic time to get pre-approved and purchase a home.
Refinancing Outlook
If your current rate is 6.75 percent or higher, December may be a strong time to revisit your mortgage options.
Refinancing could help:
Lower your monthly payment
Consolidate debt
Move from an FHA loan to a conventional loan
Remove mortgage insurance
Pull cash out for home improvements
Contact me anytime and I will put together a no-cost refinance comparison for you.
Program Updates
USDA Rural Development
Fannie Mae and Freddie Mac (Conventional)
HomeReady and Home Possible programs continue to benefit buyers with modest incomes.
Loan limits have increased for 2026, giving buyers more purchasing power entering January.
FHA
Flexible credit requirements
Competitive rates on purchase and refinance
Strong option for first-time buyers
Preparing to Buy in Early 2026
If you are planning to buy early next year, now is the time to prepare.
Consider the following:
Review your credit
Obtain a pre-approval
Gather W-2s, pay stubs, bank statements, and tax returns
Lock in a rate if the right opportunity comes up
I can help walk you through each step.
Need a Pre-Approval Quickly?
I work with clients across Minnesota and Iowa and can usually issue same-day approvals.
Apply online at:
www.laportegroup.net
Questions?
Phone: 507-847-4466
Email: kip@laportegroup.net
Thank You
Thank you to all past and current clients for your trust this year. It has been an honor to help families across our community purchase, refinance, and reach their financial goals.
Wishing you a Merry Christmas, a safe holiday season, and a successful start to 2026.
— Kip Wachal
LaPorte Group Mortgage
NMLS #8872 / #8909