What is the current average mortgage rate in the U.S.?

The current average 30-year mortgage rate in the U.S. is 6.30%, according to FreddieMac data.

How do mortgage rates in 2025 compare to earlier in the decade?

Mortgage rates are significantly higher in 2025 than they were at the start of the decade, when they were repeatedly cut during the height of the COVID-19 pandemic.

What factors could cause mortgage rates to spike again?

Volatility in the 10-year Treasury yield, inflation, and unemployment could all contribute to a sudden increase in mortgage rates, effectively closing the current window of affordability for homebuyers.

Home / Business and Economy / Mortgage Rates Plunge to 3-Year Low, Sparking Homebuyer Frenzy

Mortgage Rates Plunge to 3-Year Low, Sparking Homebuyer Frenzy

30 Sep

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Summary

Mortgage rates hit 3-year low in September 2025
Rates still significantly higher than early 2020 pandemic levels
Volatility in factors like Treasury yields could cause rates to spike again

Mortgage Rates Plunge to 3-Year Low, Sparking Homebuyer Frenzy

As of September 30, 2025, mortgage interest rates in the United States have reached their lowest point in three years. According to data from FreddieMac, the average rate on a 30-year mortgage term is now just 6.30%, a significant drop from the over 7% range seen at the start of the year.

This sudden decline in mortgage rates has sparked renewed interest among homebuyers who may have been sitting on the sidelines in recent years, anticipating a more favorable rate environment. However, experts caution that this window of opportunity may be short-lived. Mortgage rates are influenced by a variety of factors, including the 10-year Treasury yield, inflation, and unemployment, all of which remain volatile.

In fact, mortgage rates briefly fell to an average of 6.13% earlier this month, only to tick up slightly in the following week. This volatility serves as a reminder that today's low rates are not guaranteed to last, even for creditworthy borrowers. Prospective homebuyers would be wise to act quickly to take advantage of the current rate climate, as a sudden spike could effectively close this brief window of affordability.