Mortgage Momentum & Creative Incentives: Why Now is Prime for Homebuyers

1. Mortgage Rates Dip Notably

The latest data from Freddie Mac shows that the average 30-year fixed mortgage rate in the U.S. dropped to 6.63%—its lowest since early April . This marks a meaningful decline from the previous rate of around 6.72% just a week prior , delivering significant relief to prospective homebuyers.

2. Seller-Funded Rate Buy-Downs: A Win-Win

An often-overlooked strategy in real estate: seller-funded mortgage rate buy-downs. In this arrangement, sellers contribute toward paying "discount points" that reduce the buyer’s interest rate—resulting in a lower monthly payment and improved affordability.

Why it matters:

• Buyers gain immediate savings and greater purchasing power.
• Sellers can make their listings more attractive and quicken time on market.
• Discount points typically reduce rates by 0.125% to 0.25% per point .

This approach takes advantage of today's lower rates while providing tangible benefits to both parties in the transaction.

Bottom Line

With average mortgage rates hovering near 6.63%, and sellers willing to sweeten the deal through rate buy-downs, there’s strong momentum in the market—and real opportunity for buyers and sellers alike.