September 13, 2025
If you are in the market to buy a home…this may be welcomed news…mortgage rates are at the lowest level they’ve been in almost a year.
According to Freddie Mac — as of this week — the rate for the most popular 30-year fixed mortgage hit 6.35%. That’s down 15 basis points from last week which was the largest week over week drop we’ve seen so far in 2025. The last time we saw rates around this level was October of 2024 when they were 6.32%. The 15 year mortgage also declined to 5.5% percent.
So why is this happening? Well – because the market is already pricing in an interest rate cut from the federal reserve next week. Of course the fed does *not* set mortgage rates – but the fed’s actions on interest rates do play a role in how investors view the bond market including treasury notes which then influence how lenders price home loans.
Here’s the latest rate. Yes the rates are down this year but – they’re still high especially when you pull back and look at it in context. This is what the rates have looked like over the last three years – really volatile right? Then you pull back five years and you can see the dramatic spike that started in December of 2021. And then when you pull back 10 years – you really get a sense of how much the mortgage rates have gone up.
Real estate giant redfin says this lower mortgage rate has increased buyers’ buying power by 20-thousand dollars since mid-summer. While some buyers are jumping in – redfin says lots of buyers are still sitting on the sidelines waiting for even lower rates. As you just saw from the charts I just showed you, rates will go down – but those drops usually coincide with some kind of recession.
Read the numbers & see charts here.
