December 2025 Mortgage Rate Trends: What Maryland Buyers Should Expect Heading Into 2026

If you are a Maryland buyer watching rates like a hawk and refreshing loan estimates more than your social feeds, you are in good company. As we wrap up the year, December 2025 mortgage rate trends are on everyone’s mind. Buyers want to know if 2026 will finally bring some relief or if it is better to lock in a rate now. Consider this your friendly, insider-style guide to navigating the end-of-year mortgage landscape in Maryland.

Where Mortgage Rates Stand As 2025 Comes to a Close

December has delivered a mix of slight softening and the usual year-end unpredictability. Across Maryland, from Severna Park and Edgewater to Columbia, Towson, and Bel Air, buyers have seen small dips in Maryland home loan rates compared to mid-2025.

Here is what the current trend looks like:

• Rates are hovering slightly lower than the summer peak.

• Lenders are adjusting daily based on inflation, job data, and December housing activity.

• FHA and VA buyers in Baltimore City and parts of Cecil and Harford County are seeing tighter qualifying guidelines.

While every borrower’s numbers vary, the overall environment feels cautiously optimistic.

What To Expect In 2026, Based on the Current Forecast

If you are searching for the 2026 mortgage rate forecast, you have probably seen predictions ranging from dreamy optimism to total pessimism. The truth is steadier and more grounded.

Most experts agree on a few key themes:

1. Gradual improvement over the first half of 2026. Not dramatic drops, but small, meaningful movement.

2. Better affordability if inflation continues to cool. This will help Maryland home loan rates settle into a more predictable range.
   

3. Local conditions matter. Markets like Columbia, Annapolis, and Ellicott City remain competitive, which affects how rate changes impact buyer affordability.

In short, the early part of 2026 could feel more stable for buyers, especially compared to the last two years of rapid rate shifts.

Is It Smarter To Lock In Now Or Wait For 2026?

Great question. And of course, everyone wants the perfect answer. Let’s break it down Maryland-style.

Lock now if you:

• Found the right home in Annapolis, Severna Park, or Columbia.

• Want payment stability during a historically unpredictable month.

• Prefer to avoid early January lender policy resets.
  

Wait until 2026 if you:

• Still need time to shop in Towson, Eldersburg, Bel Air, or Havre de Grace.

• Believe a slight dip in rates could stretch your budget.

• Expect more inventory to hit the market after the holidays.

Either path can work, as long as you stay informed and keep your pre-approval up to date.

What Buyers Should Know Across Key Maryland Counties

Maryland real estate financing trends vary widely by area. Here is what is happening across some of the most active counties.

Anne Arundel County

With hotspots like Severna Park, Annapolis, and Crofton, competition stays strong. Even a quarter point shift in rates can make a big impact on affordability and monthly payments. Many buyers here choose quicker rate locks.

Howard County

Columbia and Ellicott City continue to attract buyers for schools, walkability, and community amenities. A small drop in Maryland home loan rates could open doors for more move-up buyers in early 2026.

Carroll County

Sykesville, Westminster, and Eldersburg offer more space and slightly slower-moving inventory. Buyers here may benefit from waiting to see how the first quarter plays out.

Baltimore County and Baltimore City

Neighborhoods like Towson, Parkville, Canton, Federal Hill, and Hamilton are seeing steady buyer interest. FHA and VA buyers should monitor lender program changes closely, especially as new-year updates take effect.

Harford and Cecil County

Bel Air, Aberdeen, Havre de Grace, and North East continue to attract first-time buyers. A small dip in rates can significantly improve affordability in these markets. These counties often respond quickly to even minor mortgage changes.

Final Thoughts: Preparing For a Spring 2026 Home Search

Maryland’s housing market is dynamic, competitive, and always influenced by interest rate activity. As we head into 2026, the best strategy is to stay prepared and stay flexible.

A few smart steps to take now:

• Refresh your pre-approval before the new year.

• Track how monthly payments shift with each rate movement.

• Ask your lender whether a temporary buydown or permanent buydown makes more sense for your budget.

• Work with a real estate team that follows daily rate data and local market shifts.

If you want personalized guidance on the mortgage rate outlook for buyers or need help planning your 2026 purchase, The Teal Clise Group is here for you. We are happy to walk you through options across every major Maryland county so you can move confidently into the new year.

Thinking about buying in 2026 or ready to start exploring neighborhoods? Reach out to The Teal Clise Group for friendly, expert guidance and a no-pressure consultation.