Mortgage Rates are Falling: What Savannah Home Buyers and Sellers Should Know for 2025
If you’ve been following the mortgage market, you may have noticed a recent shift: fixed mortgage rates are inching downward. According to Zillow’s latest data, the average 30-year fixed mortgage rate dropped to 6.21%, while the 15-year fixed rate saw an even larger decline, falling by 10 basis points to 5.53%. For those considering buying a home or refinancing in Savannah’s historic downtown area or beyond, this news could signal an opportunity.
Today’s Rates: Fixed vs. Adjustable
Currently, fixed-rate mortgages are offering better deals compared to adjustable-rate mortgages (ARMs). With ARMs, interest rates often start higher than their fixed counterparts. This means you could face higher monthly payments during the initial period of an ARM loan. For example, a 7/1 ARM currently averages 6.50%, compared to 6.21% for a 30-year fixed rate. These differences underscore the importance of choosing the right mortgage product for your financial situation.
Mortgage Refinance Rates Are Also Dropping
For those considering refinancing, rates have seen similar downward trends. The 30-year fixed refinance rate now averages 6.30%, while the 15-year refinance rate is 5.67%. This makes it an opportune time to reassess your current mortgage and potentially secure a lower rate—a move that could save you thousands over the life of your loan.
What This Means for the Savannah Market
Lower rates can boost buyers’ purchasing power, allowing them to secure a higher-priced home for the same monthly payment or save on interest over time. Sellers may also benefit as lower rates could attract more buyers into the market, potentially increasing competition and driving up home values. For those looking to refinance, now might be the time to act before rates fluctuate further.
Why Rates Are Dropping
The Federal Reserve’s decisions on interest rates significantly influence mortgage rates. Recent cuts to the federal funds rate—including one at the November Fed meeting—have contributed to this downward trend. While the Fed doesn’t directly set mortgage rates, its policies are a key indicator of broader economic conditions. Experts anticipate that mortgage rates could continue to decline into 2025, though significant drops in 2024 are unlikely.
Should You Lock in a Rate Now?
If you’re planning to buy or refinance, locking in today’s rates could be a smart move. While rates may gradually drop further in 2025, there’s no guarantee. A fixed-rate mortgage offers stability and predictability, protecting you from potential rate hikes down the line. Additionally, you can always refinance later if rates improve significantly.
Understanding Your Options
Whether you’re buying your first home, upgrading to a larger space, or considering refinancing, it’s crucial to weigh your options carefully. Each lender offers unique products, and the best choice will depend on your financial goals and circumstances.
Navigating the Savannah real estate market during shifting economic times can be complex. Buyers and sellers alike should stay informed and work with trusted professionals to make the most of current opportunities.
Let’s Connect
Ready to take the next step? Start your mortgage application today by visiting our secure Mortgage Application Page. Whether you’re buying or refinancing, this easy-to-use tool will help you get started on the path to achieving your real estate goals.
The shifting market can be complex, but you don’t have to navigate it alone. Contact a local expert to discuss your mortgage or real estate needs. Together, you can create a strategy that positions you for success in 2025 and beyond.
