How to Get a Better Mortgage Rate in 2025 as the 30-Year Fixed Nears a 1-Year Low
- Yvonne Yang
- Sep 10
- 2 min read
Key Takeaways
Mortgage rates just saw their biggest one-day drop in over a year.
The average 30-year fixed mortgage rate is now around 6.29%—its lowest since October 2024.
Buyers can take steps today to secure even lower mortgage rates, regardless of where national averages stand.
Current Mortgage Rate Trends in 2025
According to Mortgage News Daily, the average 30-year fixed mortgage is 6.29%.
The Federal Reserve is expected to cut interest rates on Sept. 17, 2025, which could put more downward pressure on mortgages.
But don’t hold out for pre-pandemic lows:
“Consumers should view 6% as the new normal through the early part of next year,” says Lawrence Yun, Chief Economist at the National Association of Realtors.
Mortgage rates around 4–5% are unlikely anytime soon.
📌 Related: Current Mortgage Rates – Mortgage News Daily
How to Get the Best Mortgage Rate in 2025
Even if average rates stay around 6%, homebuyers can take action to qualify for lower interest rates on their mortgage.
1. Improve Your Credit Score
Your credit score is one of the biggest factors lenders use to set your mortgage rate.
FICO score ranges:
Good: 670+
Very Good: 740+
Excellent: 800+
Example: On a $350,000 mortgage, borrowers with scores above 780 could get a rate of 6.19%, while those between 700–739 pay 6.39%—a difference of $13,000 over the life of the loan (LendingTree).
Tips to raise your credit score fast:
Pay bills on time (even minimum payments).
Keep credit card balances below 30% of your limit.
Ask for higher credit limits (but avoid new spending).
Dispute errors on your credit report.
Keep old accounts open for longer credit history.
🔗 Check your free reports at AnnualCreditReport.com.
2. Save for a Bigger Down Payment
A larger down payment can lower your risk in the eyes of lenders—and secure a better rate.
20% down payment often results in:
Lower mortgage rates
No PMI (Private Mortgage Insurance), saving thousands yearly
In 2024, the average down payment was 18% overall and just 9% for first-time buyers (National Association of Realtors).
Even if 20% isn’t realistic, increasing your down payment as much as possible can lead to major long-term savings.
3. Explore Alternatives to the 30-Year Fixed
While most buyers choose a 30-year fixed mortgage, other loan types may offer lower rates today.
Adjustable-Rate Mortgages (ARMs):
Current average 7/6 ARM: 5.59% (Mortgage News Daily)
Can save you half a point or more vs. 30-year fixed rates
Best suited for:
Buyers planning to sell or refinance within 5–10 years
Younger buyers who expect to upgrade homes
⚠️ Risk: If you keep the loan long-term, rates may reset higher than today’s fixed loans.
Final Thoughts: How to Lock in the Best Mortgage Rate
Mortgage rates may continue trending downward in 2025, but experts warn that 6% is likely the “new normal.” That means buyers need to focus on what they can control:
✅ Build a stronger credit score
✅ Put down as much as you can upfront
✅ Consider flexible loan options beyond the standard 30-year fixed
By taking these steps, you’ll be in the best position to secure a lower mortgage rate and save thousands of dollars over the life of your loan.
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