Good news for homebuyers and homeowners: mortgage rates just dropped, and it could be your chance to lock in a lower rate before things shift again.
The average rate on a 30-year fixed mortgage fell to 6.19% APR today, according to data from Zillow provided to NerdWallet. That’s a drop of 8 basis points from yesterday, and 20 basis points lower than a week ago. (FYI: a basis point = 0.01%.)
It’s one of the more competitive rates we’ve seen in recent months, and it might not last.
💡 Why Are Rates Dropping?
Mortgage rates often fall when the economic outlook is uncertain — and that’s exactly where we are. This week, a private-sector employment report from ADP suggested that the labor market is slowing down. That added fuel to the growing belief that the Federal Reserve will cut interest rates later this month.
Lower Fed rates typically translate into lower borrowing costs across the board — including mortgages.
Complicating matters: the ongoing government shutdown has delayed key economic data (like the jobs report and inflation readings), making it harder for markets and the Fed to fully assess the situation. Still, the trend is pointing toward lower rates ahead — and the Fed’s next move is expected at the end of the month.
Fun Fact: The Fed doesn’t shut down during a government closure, but it does rely on federal data to make decisions — and that’s now in short supply.
🏠 Is Now a Good Time to Start House Hunting?
There’s no universal “right time” to buy a home — the best time is when you can afford it.
If today’s rate fits your budget and long-term plans, don’t stress too much about whether it might dip slightly further. You can always refinance down the line if rates fall meaningfully.
Here’s what to do next:
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Get preapproved to understand your buying power.
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Compare lenders to see who’s offering the most competitive rates and lowest fees.
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Use an affordability calculator to get real about monthly payments.
If you’re not quite ready to buy, that’s OK too. Take this opportunity to:
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Pay down debt
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Build your credit score
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Boost your savings for a down payment
These steps can earn you a lower rate when you’re ready to buy.
🔒 Should You Lock Your Rate?
If you’ve found a mortgage rate you’re happy with, consider locking it in. Some lenders even offer a float-down option — meaning you can take advantage of a lower rate if one becomes available during your lock period.
With the market bouncing around as much as it is, a rate lock offers peace of mind during underwriting and closing.
Pro Tip: Rates can change daily — sometimes hourly. If you like what you see, it’s OK to commit.
🔁 Is It Time to Refinance?
Refinancing could be a smart move if your current mortgage rate is at least 0.5% to 0.75% higher than today’s rates. That means if you’re paying 6.69% or more, you may benefit from refinancing.
But refinancing isn’t just about getting a lower rate. Consider your goals:
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Want to reduce your monthly payment?
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Looking to shorten your loan term?
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Need to tap home equity for other expenses?
Each situation requires a slightly different approach — from rate-and-term refis to cash-out options.
Use a refinance calculator to estimate your savings and figure out how long it would take to break even on closing costs.
🤨 Why Is the Rate I Was Quoted Higher Than the One I Saw Online?
Here’s the reality: advertised mortgage rates assume a near-perfect borrower — top-tier credit, large down payment, and sometimes the purchase of mortgage points.
Your personalized quote will vary based on several factors:
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Credit score
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Income and debt-to-income (DTI) ratio
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Down payment size
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Loan amount and type
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Location and property type
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Employment history
Even two people with similar credit scores might get different rates based on their full financial picture.
💬 Final Thoughts from CreditVana
Mortgage rates are trending lower, and the window to act may be opening — especially if a Fed rate cut becomes official. Whether you’re looking to buy, refinance, or simply watch the market, staying informed gives you the edge.
If you’re financially ready, don’t wait for a “perfect” moment. Get preapproved, lock in a rate you like, and position yourself to act with confidence.
🔍 Ready to compare lenders?
Check out the latest mortgage offers from CreditVana’s trusted lending partners and find the right loan for your budget and goals.
