Will Mortgage Rates Go Down Soon?

Mortgage rates have been the talk of the town lately—and for good reason. For many would-be homebuyers, even a small dip in interest rate can translate into thousands saved over the life of a loan. If you’re thinking about buying in Savannah, Pooler, Richmond Hill, or any nearby community, timing and rate trends can really make or break what’s affordable. So the big question is: Will mortgage rates go down soon?

Let’s take a deep dive into current numbers, expert forecasts, how the Savannah market is behaving, what you should watch out for—and how Jarad Brown at New American Funding can help you navigate this tricky landscape.

Chart showing declining U.S. 30-year mortgage rates over months in 2025

What the Data Shows: National Trends

Recent Movement

  • According to Freddie Mac’s most recent weekly report (mid-September 2025), the average 30-year fixed mortgage rate in the U.S. is down to about 6.26%—a drop from earlier months.

  • Mortgage Bankers Association data also show that in the week ending September 12, 2025, the 30-year fixed rate averaged around 6.39% nationally.

  • Refinancing demand is rising again, after long stretches of high rates suppressing that activity. Homebuyers and homeowners alike are renewing interest now that rates are easing, albeit modestly.

Forecasts From Experts

  • Fannie Mae’s economic outlook (mid-2025) projects rates ending 2025 around 6.40%, and in 2026 around 6.00%. That’s a downward tweak from earlier projections.

  • Other institutions (Wells Fargo, NAR, NAHB) show Q3 and Q4 2025 averaging in the mid-6s for 30-yr fixed rates.

  • Many economists caution that rates won’t fall back to the ultra-low levels we saw a few years ago (e.g. 3-4%), largely because inflation is still above target and Treasury yields remain volatile.

The Savannah / Georgia Local Snapshot

Knowing what’s happening nationally is important—but local conditions often differ.

What’s the Rate Locally?

  • Realtor.com shows rates in Savannah around 6.34% APR / ~6.31% rate for a 30-year fixed loan (as of about September 20, 2025).

  • Bankrate reports Georgia’s 30-year fixed mortgage rate near 6.38%, and a 15-year fixed rate near 5.67%.

Home Prices & Market Behavior

  • The Zillow Home Values Index for Savannah shows a current average home value of $329,496, which is down ~2.6% year over year.

  • Median list price vs sale price, inventory levels, how quickly homes go pending, etc., are part of what influences buyer demand and how comfortable sellers are with lowering prices. Some areas are seeing modest cooling in price growth, not big drops.

Local Forecasts

  • Forecasts for Savannah & Georgia tend to align with national ones: modest easing (mid-6% range), but not sudden drops. EBRSavannah reported that rates in the area are likely to hold steady for much of 2025, with only small decreases if inflation and economic signals cooperate.

  • Fannie Mae’s forecasts and local analysts expect home price growth to slow, but still positive. So even if rates drop a bit, there’s risk that price increases or competition might counterbalance savings.

What’s Driving Mortgage Rates

To understand whether rates will go down, it helps to know what moves them:

  • Inflation & CPI data – If inflation shows lingering strength, the Fed will stay cautious, which keeps rates higher.

  • Federal Reserve Policy & Benchmark Rate – The Fed has signaled potential rate cuts, but timing and magnitude matter. Markets are watching Fed meeting minutes.

  • Treasury Yields – Rates on 10-year Treasuries heavily influence mortgage rates. If yields drop, mortgage rates tend to follow.

  • Economic Growth & Employment Data – Strong job reports or wage pressures can push inflation and thus rates up. Slower growth may relieve pressure.

  • Housing Supply & Demand – Inventory tightness, local demand (new buyers moving in, retirees relocating) can maintain home price pressure. If supply increases, it could ease price upward pressure, improving affordability.

A home exterior in Richmond Hill Georgia under a blue sky

What “Going Down Soon” Likely Means in Practice

Putting together national, local, expert, and economic data, here’s what “going down soon” probably looks like, realistically:

  • A drop of 0.25 to 0.50 percentage point in 30-year fixed rates is possible by late 2025, especially if inflation continues to cool.

  • However, rates dropping below ~6.0% may be harder unless there’s clear, sustained economic slowdown / Fed easing / favorable global financial conditions.

  • Changes probably won’t be uniform—borrower profile (credit score, down payment, loan type), lender, and location will affect actual rate offers.

  • Even with a rate drop, home prices may still increase—so the benefit may be partially offset by higher purchase prices.

 

How This Impacts Your Decision in Savannah & Nearby Areas

If you’re considering buying (or even refinancing) now or waiting, here are things to weigh:

If You Buy Now If You Wait
You can lock a rate in the current mid-6% range. If rates rise instead of falling, you avoid higher future costs. You may benefit from modest rate drops. But waiting carries risk—home prices could rise, inventory may remain tight, and you may pay more overall.
Sellers may be more flexible in negotiation now than in peak markets. You might find better loan terms later, but you’ll have to closely monitor rate forecasts and lock-in opportunities.
You can get pre-approved now, get clear on your budget, and shop with confidence (thanks to your lender). Waiting might give you more clarity if economic data improves—but could also lose out on current favorable deals or appealing homes.

Mortgage lender talking with clients in Savannah banker office

Why Jarad Brown – New American Funding Is Valuable Right Now

Navigating this in-between rate market requires both timing and customization. Here’s how Jarad Brown (New American Funding) can help you:

  • Up-to-Date Rate Lock Guidance: Jarad follows not just national trends, but how lenders in Savannah are adjusting. He can advise whether now is a good time to lock, or whether waiting might make sense in your case.

  • Custom Loan Matching: Different loan products perform differently in changing rate climates. Jarad can walk you through fixed vs adjustable, down payment strategies, and how lender fees might eat into any savings from a small rate drop.

  • Scenario Planning: He’ll run payment comparisons for what happens if rates drop by 0.25-0.50% vs stay flat vs rise. That helps you make informed decisions—do you act now or wait a little.

  • Local Knowledge: Savannah has unique cost considerations—property taxes, insurance (flood zones), appraisal values, local city fees. Someone who knows the local nuances helps avoid surprises and ensures you understand the total monthly cost.

Should You Wait or Act Now?

Here’s a set of actionable recommendations, with conditions, to help you decide:

  1. Get Pre-Approved Now
    Even if you’re not ready to make an offer this week, pre-approval gives you a clear picture of your borrowing power. It also helps lock in rate quotes and understand what your financial profile looks like.

  2. Monitor Inflation & Fed Signals
    Watch upcoming CPI, PPI, consumer spending, and Federal Reserve meeting announcements. If inflation falls faster than expected, that could bring rates down faster.

  3. Lock-In When You Find a Good Match
    If Jarad gives you a rate you’re comfortable with (considering your down payment, credit, etc.), especially in the mid-6% range, it could be smart to lock now rather than gamble that rates will fall more.

  4. Don’t Wait for “Perfect”
    Trying to time the absolute bottom is risky. If waiting means missing good opportunities or paying more in home price inflation, acting now might offer more stability.

  5. Reassess Every 3–6 Months
    Given how markets shift, make this decision periodically. Rates that seem high now may feel okay or even good later, depending on how they move.

Local Scenario Example

Let’s walk through a hypothetical to show how this plays out in Savannah:                                           

  • Suppose you’re looking at a $350,000 home in Pooler or Richmond Hill.

  • At 6.50% interest, 30-year fixed, with 20% down, your principal & interest payment might be around $2,210 per month (excluding taxes/insurance/HOA).

  • If rates drop to 6.00%, that payment drops to about $2,120. That’s a savings of ~$90/month (≈ $1,080/year). Over 30 years, that difference adds up—but it’s not dramatically cheaper unless you’re also getting a lower purchase price or doing a shorter loan term.

So, waiting for a drop could make sense if it’s only a matter of a few months. But if you find a good house now, locking might avoid risks.

What to Watch Out For

  • Hidden Costs Still Apply: Even with lower rates, property taxes, insurance, maintenance, and other carrying costs often increase. If insurance (especially flood or coastal risk insurance) spikes, it can offset rate savings.

  • Credit Score & Loan Fees Matter More: Your personal profile (credit, down payment size, loan type) will affect what rate you’re offered. Two borrowers with identical credit may get significantly different rates depending on lender, fees, points, etc.

  • Economic Surprises: Inflation could persist; global economic shocks, supply chain issues, or geopolitical risks could push rates back up.

  • Home Price Growth: If home prices keep rising faster than rate drops, affordability could actually worsen for some buyers.

Final Thoughts

So, will mortgage rates go down soon? Very likely yes—but we’re talking modest drops, not dramatic swings. National forecasts suggest 2025 will end with rates in the mid-6% range (around 6.40%), and perhaps into ~6.00% by 2026 if all the “stars align” (inflation cooling, steady economic growth, favorable Fed action). In Savannah, those patterns seem to hold true. You can probably expect something similar—slight rate relief, but paired with still-strong home prices and competitive demand.

If I were advising someone in your shoes, here’s what I’d do:

  • Chat with Jarad Brown at New American Funding now. Get pre-approved, pull together your financial profile, compare loan types.

  • Keep an eye on rate forecasts from Freddie Mac, Fannie Mae, Bankrate, and local mortgage lenders.

  • Identify your comfort level: if locking a rate now still gives you what you want (home type, area, payment), it might be better than waiting for possible savings that may or may not materialize.

You deserve clarity, not uncertainty. With the right lender, good data, and a plan, you can make a confident move in Savannah’s evolving market.