Homebuyers are getting a bit more relief as mortgage rates continue to slide.
The average 30-year fixed rate fell to 6.5% on Thursday, down from 6.56% the previous week and well below the 2025 peak of 7.04% in January, according to Freddie Mac. Rates have been on a mostly downward trajectory since late May.
Mortgage rates tend to follow the 10-year Treasury yield, which has fallen in recent weeks. Demand for Treasuries has remained relatively stable as the job market shows signs of cooling and the Federal Reserve is expected to cut rates in September. More demand pushes Treasury prices up, which lowers yields and in turn brings mortgage rates down.
“We have seen that the employment sector has weakened, and there is other weaker economic data,” says Melissa Cohn, regional vice president of William Raveis Mortgage. “At the same time, the rate of inflation has remained fairly stable in spite of the impact of tariffs. That is a perfect recipe for lower rates.”
Cohn says “rates don’t fall in a straight line” and “upward bumps” are to be expected as markets respond to economic and political news. Still, the recent decline means homebuyers could save money on monthly homeownership costs.
How much monthly mortgage payments could change
Here’s a look at how 30-year monthly mortgage costs vary at different interest rates, based on a U.S. median home price of $410,800.
7.04% (Jan 2025 peak)20% down payment: $2,19515% down payment: $2,33210% down payment: $2,4706.5% (current)20% down payment: $2,07715% down payment: $2,20710% down payment: $2,337
Compared with the peak rate in 2025, monthly mortgage costs have declined by $118 per month with a 20% down payment. For a 10% down payment, it’s savings of $133 per month.
Of course, the mortgage payment is only one part of the equation. Homeownership also comes with other recurring costs, such as property taxes, homeowners insurance, HOA fees and maintenance.
While the recent drop in rates may not create enough savings on its own to make a home purchase affordable, it can still make a meaningful difference in monthly budgeting.
To see how different mortgage amounts and rates would affect your monthly payment, try CNBC Make It’s mortgage calculator.
Why now might be a good time to buy
While mortgage rates can be hard to predict, the housing market has softened, which could make it the right time for buyers who can afford to purchase a home.
National median home prices are down 0.2% since the start of the year, according to Realtor.com.
Meanwhile, major forecasts — including from Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors — expect 30-year mortgage rates to remain largely flat in the mid 6% range through the end of 2025.
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