As of June 12, 2025, the average 30-year fixed mortgage rate in the U.S. ticked up slightly to 6.91%. While that figure may sound high compared to historic lows in recent years, today’s homebuyers have a unique opportunity to work around those rates—and even turn them into a strategic advantage.
The Power of a Rate Buy Down
Most lenders are currently offering buyers the option to “buy down” their interest rate, often bringing the effective rate to just under 6%. This small shift can have a big impact. For example, on a $380,000 home purchase with 3% down, buying the rate down can save a buyer around $200 per month on their mortgage payment. Over the course of a year, that’s nearly $2,400 back in your pocket—and even more over the life of the loan.
Use Seller Credits to Lower Your Costs
Even better, you may not have to cover the cost of the rate buy down yourself. In today’s market, many savvy buyers are negotiating full-price offers with a twist—they’re requesting that the seller contribute to closing costs or offer buyer credits, which can be used to pay for a rate buy down. This strategy keeps your up-front out-of-pocket expenses lower while still securing the monthly savings of a better interest rate.
Builders Are Offering Big Incentives
If you’re house hunting, new homes may offer the best value right now. Inventory in the new construction market is building, and many builders are motivated to move homes. That often translates into incentives like closing cost credits, upgraded finishes, or interest rate buy down programs that can make buying brand-new homes more affordable than competing for limited resale inventory.
Final Thoughts
Yes, mortgage rates are higher than we’ve seen in the past few years—but that doesn’t mean it’s a bad time to buy. In fact, today’s market offers opportunities for prepared buyers to negotiate smart deals, especially with seller-paid rate buy downs and builder incentives in play.
If you’re ready to take the next step in your home search, consider talking with a lender or real estate agent about how a rate buy down could work in your favor. The key is knowing your options—and using them to make a strong financial move, even in a rising rate environment.