St. Louis homebuyers are seeing a modest but encouraging shift in borrowing conditions this December, as mortgage rates edged lower across multiple loan types. The average 30-year fixed mortgage rate declined to 6.23%, a decrease of 0.07%, while the 15-year fixed rate also moved downward to 5.75%. This easing provides welcome relief for buyers who have been navigating elevated financing costs over recent months.

The decline in rates is expected to inject renewed momentum into the St. Louis housing market. Lower borrowing costs can improve affordability for buyers while expanding the pool of qualified purchasers for sellers. Other loan products also reflected favorable movement, with the 30-year FHA rate now at 5.85% and the 7/6 SOFR adjustable-rate mortgage at 5.77%.

Prospective buyers in the St. Louis area may find this an opportune time to explore their options and lock in more favorable financing. As December progresses, optimism remains that improving rates will help stimulate both buying and selling activity throughout the local market.