Mortgage rates are easing. Here is what that means for you
You have probably seen the headlines. Rates have slipped to 2025 lows, and that shift is already changing the conversation for buyers and sellers. The big idea is simple. Better payments improve affordability, which brings more people back into the market.
The average rate on a 30-year U.S. mortgage fell this week to its lowest level in nearly 10 months (6.58% on a long-term rate), giving prospective homebuyers a boost in purchasing power.
Mortgage rates are impacted most by the 10-year Treasury, not the Fed. If people think inflation’s cooling → bond rates go down → mortgages get cheaper. That's what we're seeing now.
The real money impact
A small move in rate can change the math in a meaningful way. On a $1,200,000 purchase with 20 percent down, the loan amount is $960,000. At 7.25 percent, the monthly principal and interest is about $6,549. At 6.58 percent, it is about $6,118. That is roughly $430 every month. Your numbers will vary based on credit, loan type, and exact terms, but you can see how quickly this adds up.
Buyers
Compare loans with confidence
When you shop for a mortgage you will see two key numbers. Both matter and it’s important you understand the difference.
Note Rate
This is the interest rate used to calculate your monthly principal and interest. It tells you the cost of borrowing, but it does not include fees.
APR, the Annual Percentage Rate
Think of APR as the all in cost of financing. It includes the note rate plus most of the fees you pay to get the loan. That can include lender origination, discount points you pay to reduce the rate, prepaid interest, upfront mortgage insurance if applicable, and some third party costs like the credit report, flood certification, and tax service fees.
Bottom line
Note Rate equals interest rate only.
APR equals interest rate plus most fees, which is the real cost.
So next time you’re shopping for a mortgage, don’t just look at the note rate—check out the APR to see what you’re really paying!
[Thanks to our partners at OriginPoint for the clear explanation of Note Rate and APR. If you want to explore refinancing or purchasing options in your price range, reach out to Lysa Griffith and include our team so we can run your scenario together.]
Sellers
What lower rates mean for your sale
Lower payments bring more buyers back into the search. That usually shows up first as higher showing activity and more serious conversations for well presented (painted, staged, etc.) and well priced homes.
Here’s how to get ready:
Price to today, not to last spring. Buyers are value aware, and the best prepared homes earn the strongest offers.
Tighten presentation. Fresh paint, tidy landscaping, and minor fixes help your home rise to the top as more buyers reengage.
Be ready for momentum. If rates slip again, traffic can bump quickly. Have disclosures, inspection, and staging lined up so you can meet that demand.
If you would like our team to model payments at different rates for your budget, or review side by side Loan Estimates, we're happy to help. If you are selling, we can also show how the recent rate move is affecting demand in your neighborhood and what that means for pricing and timing.