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As of early December 2025, the average rate for a 30-year fixed mortgage in the U.S. is about 6.19%.  

By comparison, around this time last year, that rate was averaging roughly 6.69%.  

That means rates have dropped about 0.5 percentage points compared to one year ago — a modest but meaningful shift for buyers.

🏡 What That Means for Homebuyers

• Lower monthly payments. Even a half-point drop in interest makes a big difference — over the life of a 30-year loan that translates to significant savings.  

• More buying power. Lower rates can increase how much home you can afford while keeping your monthly payment manageable.

• Renewed interest from buyers. For many who paused their search because of high rates, this rate dip may make homeownership more feasible again.

✅ But Remember: Your Rate Is Personal

While the “average rate” gives a ballpark, what you pay depends on you. Lenders look closely at several factors including:

• Down payment amount / loan-to-value. A larger down payment often helps you secure a better rate.  

• Debt-to-income ratio (DTI). Lenders typically prefer that your total debt payments (including the mortgage) not exceed around 36% of gross monthly income.  

• Credit score. A strong credit score can qualify you for more competitive mortgage rates.  

• Overall financial profile (assets, income stability, down payment, etc.). Together these factors shape the “real” rate you get.  

So even though the headline 30-year rate sits near 6.19%, many buyers — especially those with a solid down payment and budget — may qualify for even lower rates.

💡 What This Means for You (As Your Agent)

If you’ve been on the fence about buying a home — now is a good time to revisit the idea. The drop in rates improves affordability and could edge more homes within reach. But the right rate for you will depend on your credit, income, down payment and debt situation.

If you have questions about how this plays out in your budget — or if you’re ready to start the buying process — I’m here to walk you through it. 

Contact me today to get started!

Sockkalingam Swaminathan
Your trusted Realtor
Email: swamitherealtor@gmail.com
Mobile: 248.986.7873
Website: http://Sockkalingam Swaminathan – Livonia – Key Realty