Mortgage Rates Drop to Lowest Level in Nearly a Year
Good news for buyers, mortgage rates just dipped to their lowest point since October 2024! According to Freddie Mac, the 30-year fixed-rate mortgage is averaging 6.50% this week. That may not sound like a big difference, but even small changes in rates can have a big impact on monthly payments.
Why This Matters
Lower rates open the door for more buyers to qualify for homes.
Sellers may also feel encouraged to list, knowing affordability just got a little better.
Refinance activity is picking up too, applications are up 20% compared to this time last year.
Market Outlook
Experts say mortgage rates are likely to hover in the mid-6% range for the rest of 2025, with the potential to drop closer to 6% in 2026. The Federal Reserve is also expected to cut short-term interest rates soon, which could bring additional relief down the line.
Current Averages (Week Ending Sept. 4, 2025):
30-year fixed: 6.50% (down from 6.56% last week)
15-year fixed: 5.60% (down from 5.69% last week)
Bottom line? Stability in rates makes it easier for buyers to plan, and every small dip helps stretch their budget a little further.
Mortgage Rates Drop to Lowest Level in Nearly a Year Sep 5, 2025