Mortgage rates drop

Mortgage Rates Drop to 6.35%: Market Momentum Builds

Every week, I track the trends shaping the housing market. Right now, the big story is simple — mortgage rates dropped and buyers are paying attention. The September 2025 housing market is showing new signs of energy as rates fall, equity stays strong, and more people feel ready to move.

Mortgage Demand Surges as Rates Fall

Mortgage rates dipped to 6.35%, the lowest level in almost a year. That small change made a big impact. According to Freddie Mac, more buyers applied for loans, and many homeowners rushed to refinance. Lower rates often spark new interest, and this time is no different.

If you’ve been waiting to buy, this may be your moment. A small drop in rates can mean lower payments or higher buying power. For sellers, this could bring more buyers into the market. If you already own a home, refinancing might save you money each month.

Home Equity Remains High

Even as home prices grow more slowly, home equity is still near record highs. The average homeowner now has about $307,000 in equity, giving them real financial flexibility. That equity can help fund a move, a renovation, or even future investments. If you’re unsure how much equity you have, talk with a real estate professional for a quick “equity checkup.”

The Bigger Economic Picture

A new report showed that job growth was lower than first thought. This has led experts to believe that the Federal Reserve may soon lower interest rates. That move could keep borrowing costs trending down, giving buyers even more options this fall.

Bottom Line

With mortgage rates dropping, buyer activity rising, and home equity strong, the market is shifting in your favor. Whether you’re buying, selling, or refinancing, now is a smart time to explore your options.

Ready to take the next step? Let’s connect and make a plan that fits your goals.