Mortgage Rates Are Falling: 5 Smart Moves You Can Make Now

Where Rates Have Been

Back in January 2021, 30-year mortgage rates were at historic lows, hovering around 3%. However, that did not last.

  • In 2022, rates surged past 5% on average.
  • By the end of 2023, they crept up to just under 7%.
  • In 2024, they crossed the 7% threshold for the first time since the early 2000s.

For anyone watching the housing market, it has been a rollercoaster.

Where We Are Now

Fast forward to September 2025, and we are seeing a significant turnaround. According to Mortgage News Daily1, 30-year fixed mortgage rates have fallen to an average of 6.13%, the lowest we’ve seen in three years.

That is a meaningful drop from the highs of 2023 and 2024 and could open the door for homebuyers and current homeowners alike to make their move.

So, What Should You Do?

For anyone who has thought about purchasing or buying over the last 3 years but has put it on the back burner because of high mortgage rates, this drop offers a new opportunity. Here are five tangible moves you can make today with this second chance.

  • Talk to a lender: Get a clear picture of what you can afford and which loan options suit your situation best.
  • Get pre-approved: If you are looking to buy, a pre-approval gives you a head start in a competitive market.
  • Consider refinancing: Locked into a higher rate? A refinance, especially a rate-and-term or cash-out option, could save you money or help you tap into home equity.
  • Check your credit score: A higher score can qualify you for better rates. If it needs improvement, ask your lender for tips on boosting it.
  • Act sooner rather than later: The economy is always shifting. These lower rates could disappear as fast as they came.

Final Thoughts

With 30-year mortgage rates falling from over 7% to just 6.13%, there is a renewed opportunity to buy that dream home or refinance your existing loan. The window may not stay open for long, so talk to your lender, explore your options, and take advantage while rates are still low.

Source:
[1] Mortgage News Daily
www.mortgagenewsdaily.com

Bryan Markham
Senior Vice President Mortgage Banking
NMLS No. 652520

815-645-2006
[email protected]

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Opinions expressed are solely my own and do not express the views or opinions of Stillman Bank.