N※N

Mortgage rates fall to a yearly low of 6.35%, spurring renewed interest in home buying

  //house-home.news-articles.net/content/2025/09/1 .. 35-spurring-renewed-interest-in-home-buying.html
  Published in House and Home on Friday, September 19th 2025 at 3:44 GMT by KUTV
          ^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

2025-09-19 299 x 168 / 9138 Bytes

2025-09-19 299 x 168 / 11849 Bytes

2025-09-19 299 x 168 / 7126 Bytes

U.S. Mortgage Rates Drop to a Year‑Long Low, Sparking a Resurgence of Home‑Buying Interest

A sharp decline in U.S. mortgage rates has jolted the housing market, with the average rate for a 30‑year fixed‑rate mortgage sliding to 6.35% as of the week ending June 18, according to the Mortgage Bankers Association (MBA). The drop, the lowest level seen in the past twelve months, has reinvigorated buyers who had previously been put off by higher borrowing costs, and has also spurred lenders to roll out fresh incentives and loan‑program options.

The Numbers Behind the Trend

• Average 30‑year fixed‑rate: 6.35% (down from 6.65% a year ago).
• Average 15‑year fixed‑rate: 5.85% (down 0.20 points).
• Average jumbo loan: 6.75% (down 0.25 points).

These averages are derived from the MBA’s weekly mortgage‑rate survey, which aggregates data from more than 100 lenders nationwide. The latest figures reflect a combination of lower long‑term Treasury yields, a rebound in the 10‑year Treasury rate to 4.05% after a brief dip, and a shift in mortgage‑originator pricing strategies.

The article links to the MBA’s own dashboard, which provides interactive charts of the monthly rate trend, allowing readers to zoom in on the rate swings over the last three years. The chart highlights that while the rates peaked at 7.35% in early 2023, they have since eased to the current 6.35% plateau, a swing that the MBA attributes largely to the Federal Reserve’s pause in policy rate hikes after reaching a 23‑year high of 5.25%–5.50%.

Why the Drop Matters for Buyers

For many prospective homeowners, the change from 6.65% to 6.35% translates into a substantial saving on monthly payments and overall loan costs. At a $300,000 loan, the monthly payment difference can be roughly $60—$70, or about $8,000 over the life of the loan—when a 30‑year amortization is considered.

Real‑estate agent Linda Thompson from Salt Lake City’s Urban Home Realty explains that this rate environment has already begun to shift the market dynamics: “We’ve started to see a measurable uptick in the number of inquiries we receive. Buyers who were previously considering renting are now re‑evaluating, especially those who have been holding off because the rates were too steep. The 6.35% rate is giving them confidence that they can afford a home they’ve had their eye on for months.”

The article also quotes a mortgage broker, Mark Delgado of SLC Mortgage Solutions, who notes that several of his clients who had put off closing on homes are now re‑entering the market. “The lower rates are a signal that the market might be stabilizing, and the lenders are responding by offering incentives like closing‑cost assistance, which further sweetens the deal,” Delgado says.

Lender Incentives and New Loan Programs

With rates easing, lenders are rolling out promotional packages to capture the renewed interest. The article highlights two of the most popular incentives:

1. Closing‑cost assistance: Up to $3,000 toward closing costs for first‑time buyers, often provided as a loan‑amount‑plus‑fee product that can be paid off when the home is sold or refinanced.
2. First‑time‑buyer programs: Some banks, such as First National Bank of Utah, have begun offering a 2% down‑payment reduction for qualified buyers with a credit score above 680, effectively lowering the upfront cash requirement.

The article links to a related piece, “How to Take Advantage of Closing‑Cost Assistance,” which outlines eligibility criteria, the application process, and tips for maximizing the benefit. It also points readers to the U.S. Department of Housing and Urban Development (HUD) page on the HomeReady program, which offers low down‑payment options for qualified borrowers.

The Broader Economic Context

While mortgage rates have found a temporary respite, the article provides context by linking to recent Federal Reserve statements. The Fed’s 2025 policy meeting minutes are referenced, indicating that the central bank remains cautious about further easing due to inflationary pressures that remain above the 2% target.

The piece also cites a Bloomberg report on the 10‑year Treasury yield, noting that the yield is presently at 4.05%—a level that has been supportive of mortgage‑rate declines. The article offers a sidebar with a quick primer on how Treasury yields influence mortgage rates: a 1‑basis‑point move in the 10‑year yield can translate to roughly 0.5‑basis‑point change in the 30‑year mortgage rate.

Market Implications and What to Watch

Housing inventory remains a persistent constraint. According to the National Association of Realtors (NAR), the inventory for existing homes in the U.S. remains at only 1.5 months of supply—far below the 3‑month threshold that would indicate a balanced market. The article points to a local NAR data release, showing that in the Salt Lake City metro area, inventory is slightly higher than the national average, yet still limited enough to sustain price pressure.

Moreover, the article references a recent KUTV special report on “Housing Affordability in Utah,” which delves into the regional factors that keep home prices elevated despite the rate cut. These factors include a strong population influx, limited new construction, and a tight labor market.

For buyers, the takeaway is that timing is critical. While lower rates are a boon, the high price tags and low inventory mean that sellers still hold a competitive advantage. The article advises readers to work closely with a trusted lender and realtor, to secure a pre‑approval early, and to be prepared to make a quick decision when a desirable property surfaces.

Final Thoughts

In sum, the recent dip in mortgage rates to 6.35% marks a pivotal moment in the U.S. housing market. The decline has opened a window of opportunity for buyers who were previously priced out, and has prompted lenders to innovate with new incentive packages. However, the market’s structural issues—particularly limited inventory and high home prices—remain significant hurdles. Buyers who can act quickly and strategically will be best positioned to take advantage of the lower borrowing costs before rates potentially climb again.

For a deeper dive into how mortgage rates affect your specific situation, KUTV recommends consulting the linked resources on loan programs and visiting the Mortgage Bankers Association’s rate‑forecast page.