BREAKING: Mortgage Rates Plummet to Lowest Level Since 2025—What It Means for Your Wallet

Banks are practically paying you to borrow now—or at least that's what the latest mortgage rate plunge suggests.

The Rate Freefall

30-year fixed mortgages just cratered to levels not seen since the start of 2025. Homebuyers are sprinting to lock in deals before lenders 'adjust' these 'unusually favorable' terms.

Why This Time Is Different (Or Is It?)

Wall Street claims the dip reflects 'macroeconomic stabilization'—translation: they need your debt revenue after crypto drained their liquidity pools.

The Fine Print

These rates won't last. Neither will the 'limited-time' origination fees. But hey—at least the housing market can enjoy its sugar rush before the next Fed-induced hangover.

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After spending much of 2025 stuck in a narrow range between 6.6% and 6.8%, mortgage rates are falling now after hiring data released in early August showed weak job growth in recent months. In response to the job weakness and data showing inflation in July was still sticky, but below economists’ expectations, traders see a 91% chance of the Fed dropping interest rates by 25 basis points next month.

While lower rates provide some relief to prospective homebuyers, they might not move much lower from here, Chen Zhao, head of economics research at Redfin, said in a statement.

“The mortgage rates that buyers can lock in today have already priced in the likelihood that the Fed will cut rates on Sept. 17,” Zhao said. “That means that mortgage rates are unlikely to drop any further when the Fed actually makes the expected cut. And the window to snag a mortgage rate in the mid-6s may be limited: Increased rate volatility is expected in coming weeks as new economic data is released.”

So far, recent rate drops have done little to bring homebuyers off the sidelines, though refinancing activity did tick up. Refinancing applications jumped 23% through Friday from a week earlier, according to the Mortgage Bankers Association. Purchase activity, meanwhile, saw just a 1% increase week-over week.