Tips for Securing a Better Mortgage Rate as 30-Year Fixed Rates Approach a Yearly Low

Written by Emily J. Thompson, Senior Investment Analyst

Source: CNBC

Updated: Sep 08 2025

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Source: CNBC

Mortgage Rate Trends: The average rate for a 30-year fixed mortgage has dropped to 6.29%, the lowest since October, but remains significantly higher than pre-pandemic levels. Experts anticipate potential interest rate cuts from the Federal Reserve, which could provide further relief for homebuyers.
Improving Credit Scores: Borrowers can secure better mortgage rates by improving their credit scores, which are influenced by timely bill payments, maintaining low credit utilization, and correcting errors on credit reports. A higher down payment can also lead to lower rates, although many first-time buyers find 20% down payments unrealistic.
Adjustable-Rate Mortgages (ARMs): More buyers are considering ARMs, which offer lower initial rates compared to fixed-rate loans. While ARMs can be beneficial for those with shorter timelines, they carry the risk of higher rates in the future.
Financial Strategies for Homebuyers: To optimize mortgage terms, potential buyers should focus on their creditworthiness, consider larger down payments, and explore various mortgage options, including ARMs, to navigate the current market effectively.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.