Mortgage interest rates have dropped slightly over the past 30 days. As of this week, the average U.S. interest rate for 30-year fixed-rate mortgages is 6.58%, down from 6.75% a month ago. While most current predictions are for a continuation of this trend throughout 2025, it isn’t clear if an expected Fed move to lower short-term interest rates is already baked into the current mortgage rate market.
Compared to the long-term average rate of 7.71%, homeowners are currently saving roughly $76 per month for every $100,000 borrowed. However, mortgages are now slightly more expensive than they were a year ago. Over the past year, the average monthly payment on a $100,000 30-year fixed-rate mortgage has increased by about $15. If you were to take out a maximum conventional mortgage today ($806,500), your monthly payment would be around $120 more than it would have been in August 2024.