M
ortgage rates have slipped below 6.5% in the past month, sparking a surge in applications and pending sales. LendingTree’s latest analysis indicates that these declines could shave roughly $40,000 off a 30‑year loan’s total cost and save buyers about $1,340 per year when they shop around. The average 30‑year fixed rate fell to 6.30% this week, down from 6.34% last week and 6.32% a year ago, according to Freddie Mac. Jessica Lautz, deputy chief economist at the National Association of REALTORS®, notes that the lower rates give buyers a “sweet spot” to broaden their search and access more inventory.
Freddie Mac’s chief economist, Sam Khater, reports that the lowest rates in a year are encouraging buyers to move forward, reflected in a 14% rise in mortgage applications versus last year and a 4% increase in signed contracts in August. The Mortgage Bankers Association confirms double‑digit growth in applications, while NAR data shows a 3.8% year‑over‑year rise in purchase contracts.
LendingTree’s study tracks the 30‑year fixed rate from July 2024 to July 2025, noting a 0.51‑point drop from 7.19% to 6.68%. This translates to an average monthly payment reduction of $112, or $1,340 annually. State‑level analysis shows the biggest monthly savings in Washington, D.C., Massachusetts, and California—about $210 per month—equating to roughly $76,000 over 30 years.
Matt Schulz, LendingTree’s chief consumer finance analyst, urges buyers to leverage their bargaining power: compare rates, consider paying points, or opt for a 15‑year mortgage. With a 20% down payment on a $400,000 home at 6.30%, the monthly payment would be $1,981; a 10% down payment raises it to $2,228.
Weekly rate snapshot (ending Oct. 9): 30‑year fixed at 6.30% (down 0.04% from last week, 0.02% below last year’s average); 15‑year fixed at 5.53% (down 0.02% from last week, 0.12% above last year’s average).
