Summary
Mortgage rates in the U.S. are decreasing, with a significant drop occurring between July 2024 and July 2025. This decrease is leading to substantial savings for borrowers, particularly in high-cost states like Washington D.C., Massachusetts, and California. However, in North Dakota, mortgage rates have slightly increased, leading to higher payments.
Key Facts
- Mortgage rates are decreasing, projected to end the year in the low 6 percent range.
- Average rates dropped by 0.51 percentage points between July 2024 and July 2025, reaching 6.68 percent.
- Borrowers save about $40,000 over the life of a 30-year mortgage, or $111 per month.
- The biggest savings are in Washington D.C., Massachusetts, and California.
- In these states, savings over 30 years exceed $76,000.
- The smallest savings are in Minnesota, South Dakota, and Wisconsin, with only around $24-$31 per month.
- North Dakota saw an increase in average mortgage rates by 0.03 percentage points.
- Lower mortgage rates could enable more households to afford homes, potentially increasing home sales in future years.
