FROM ABC NEWS: Mortgage rates have fallen rapidly in recent months, offering homebuyers an opportunity for some borrowing relief if they move ahead with the big-ticket purchase.
The average interest rate on a 30-year fixed mortgage stands at 6.35%, dropping from 6.5% over the week ending on Thursday, which amounted to the largest one-week drop in mortgage rates this year, FreddieMac data shows. As recently as January, the average 30-year fixed mortgage rate exceeded 7%.
The sharp drop in mortgage rates owes in part to government data showing a significant decline in hiring, which has heightened expectations that the Federal Reserve will slash interest rates and in turn put downward pressure on borrowing costs, some analysts told ABC News.
Each percentage point decrease in a mortgage rate can save thousands or tens of thousands in additional cost each year, depending on the price of the house, according to Rocket Mortgage.
“This is a significant drop,” said real estate economist agent Ken Johnson, from the University of Mississippi.
So is it the right time to buy?
“Prices have cooled, inventory is up, time on the market is up,” said Julia Fonseca, a professor at the Gies College of Business at the University of Illinois at Urbana-Champaign. “All of this suggests it’s a more favorable market for buyers relative to recent years. That said, it’s really hard to predict what will happen with prices in the future.”
The interest rate on a 30-year fixed mortgage just saw its biggest weekly drop of the year, a hopeful sign for Americans looking to buy a home. @eschulze
reports. pic.twitter.com/LKyAWWIosS— Good Morning America (@GMA) September 12, 2025
The average 30-year fixed mortgage rate today: 6.29%
Same day last year: 6.15%
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10-year Treasury yield today: 4.07%
Spread today: 222 bps pic.twitter.com/4Aoax1HkXV— Lance Lambert (@NewsLambert) September 12, 2025
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