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Mortgage Rates Plummet: Homebuyers Rejoice as Costs Dip
20 Oct
Summary
- 30-year mortgage rates down 1.14% from last week
- 15-year mortgage rates down 1.24% from previous week
- Experts expect rates to remain relatively steady for rest of 2025
As of October 20, 2025, the average rate on a 30-year, fixed-rate mortgage has decreased by 1.14% to 6.27% compared to the previous week. The annual percentage rate (APR) on a 30-year fixed mortgage has also dropped from 6.37% to 6.29%. This means that a $100,000 loan with a 30-year, fixed-rate mortgage of 6.27% will cost $617 per month in principal and interest, with a total interest payment of $122,689 over the life of the loan.
The 15-year mortgage (fixed-rate) has also seen a significant decline, dropping 1.24% to 5.33% from the previous week's 5.4%. The APR on a 15-year fixed mortgage has decreased from 5.44% to 5.38%. A 15-year, fixed-rate mortgage with today's interest rate of 5.33% will cost $808 per month in principal and interest on a $100,000 mortgage, with a total interest payment of approximately $45,903.
While mortgage rates have fallen since mid-January 2025, experts expect them to remain relatively steady for the remainder of the year. If the Federal Reserve continues to cut the federal funds rate, it's possible that mortgage rates will decrease in 2026. However, a significant drop in mortgage rates seems unlikely in the near future.
