Mortgage interest rates have continued to decline over the past 30 days. As of this week, the average U.S. rate for a 30-year fixed mortgage is 6.35%, down from 6.58% a month ago. Some borrowers have even reported locking in rates below 6% online. While most forecasts suggest this downward trend may continue gradually through 2025, it’s unclear whether the expected Fed rate cuts are already priced into current mortgage rates.
Compared to the long-term average of 7.71%, today’s rates offer significant savings—about $91 less per month per $100,000 borrowed. However, rates are still slightly higher than they were a year ago. Over the past 12 months, the average monthly payment on a $100,000 30-year fixed mortgage has increased by approximately $15. If you were to take out the current maximum conventional mortgage of $806,500, your monthly payment today would be about $120 higher than it would have been in September 2024.