U.S. Mortgage Rates Fall to 6.09%, Reaching Lowest Level in Over a Year

Published: 29 Oct 2025

Author: Precedence Research

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According to recent data from Zillow, the average 30-year fixed mortgage rate has declined to 6.09%, marking its lowest level in over a year. This notable drop brings rates close to the 6% threshold, a level that previously fueled a surge in home refinancing activity as borrowers rushed to take advantage of lower costs.

The decline in mortgage rates is offering a glimmer of relief for both homebuyers and homeowners who have been navigating one of the most challenging housing markets in recent years. Lower borrowing costs could help stimulate housing demand, potentially encouraging more buyers to re-enter the market after months of elevated rates and affordability concerns. Additionally, the shift may prompt a new wave of refinancing among homeowners seeking to reduce their monthly payments or lock in more favorable loan terms.

Experts suggest that this trend reflects easing inflationary pressures and shifting expectations around Federal Reserve policy, which have contributed to lower yields in the bond market, a key driver of mortgage rates. If this downward momentum continues, it could signal the beginning of a more balanced phase for the U.S. housing sector, where affordability and demand gradually stabilize.

Current mortgage rates are as follows:

• 30-year fixed: 6.09% 
• 20-year fixed: 5.75% 
• 15-year fixed: 5.44% 
• 5/1 ARM: 6.22%
• 7/1 ARM: 6.53%
• 30-year VA: 5.58%
• 15-year VA: 5.01%
• 5/1 VA: 5.48%

Current Mortgage Refinance Rates are as follows:

• 30-year fixed: 6.24%
• 20-year fixed: 5.84% 
• 15-year fixed: 5.64% 
• 5/1 ARM: 6.47% 
• 7/1 ARM: 6.62%
• 30-year VA: 5.72% 
• 15-year VA: 5.55%
• 5/1 VA: 5.54% 

The mortgage lender generally offers the lowest rates to people with higher down payments, excellent credit scores, and low debt-to-income ratios. However, waiting for mortgage rates to drop isn't the best way to get the lowest rate; focusing on increasing your income is a better strategy to reduce it.

One of the frequently asked questions is how to choose a mortgage lender. Included in the process before finding the best mortgage lender is applying for mortgage preapproval with three or four companies within a short period. When choosing a lender, the true annual cost of borrowing money is a crucial factor that can be determined by comparing the mortgage's annual percentage rate.

The main difference between fixed-rate and adjustable-rate mortgages is that the fixed rate is locked in for the entire duration of the loan you have taken. In contrast, the adjustable rate remains the same for a specified period before it changes. For example, with a 7/1 ARM, the rate is locked for the first 7 years and then adjusts annually for the remaining years up to 23 years. Meanwhile, the adjustable rate starts lower than a fixed rate, but it can change, especially increasing after the initial period.