Mortgage Rates Fall to an 11-Month Low. What It Means for Buyers and Sellers

After months of steady pressure on housing affordability, buyers finally have a reason to celebrate: mortgage rates have dipped to their lowest average since mid-October 2024.

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.35% in the week ending September 11, down 15 basis points from the previous week. Rates have now declined or held steady for eight straight weeks, shedding 40 basis points since mid-July. To put that in perspective:

• August average: 6.59%

• July average: 6.72%

• June average: 6.82%

• 52-week range: as high as 7.04% (January 2025) and as low as 6.08% (September 2024)

This shift may not seem dramatic, but even a quarter-point change can open the door to thousands of additional buyers — or make the difference in what price point they can afford.

The Broader Economic Backdrop

Recent reports from the Bureau of Labor Statistics suggest the economy is cooling:

• Job growth is slowing. August payrolls rose by only 22,000 jobs, compared to 79,000 in July. Earlier months were revised downward, showing weaker momentum than originally reported.

• Annual job growth estimates were cut in half. Benchmark revisions show the economy added just 847,000 jobs from March 2024 to March 2025, not the previously estimated 1.76 million.

• Inflation remains sticky. The Consumer Price Index rose 2.9% year-over-year in August, up slightly from 2.7% earlier this summer. Core CPI held at 3.1%.

The Federal Reserve is widely expected to cut its benchmark interest rate at its September 17 meeting. Futures markets currently assign a 92% chance of a 25-bp cut and a 7% chance of a 50-bp cut. A cut would likely put additional downward pressure on mortgage rates.

Meanwhile, the 10-year Treasury yield — a key driver of mortgage pricing — has eased to around 4.02%, its lowest level since April.

Local Real Estate Takeaway

For buyers, lower rates translate to improved purchasing power just as we move into fall, a season when inventory typically remains steady but competition cools. For sellers, this rate relief could spark fresh demand from buyers who were previously priced out.

If you’ve been on the fence about buying or selling, now may be the moment to re-evaluate your strategy.