Mortgage Rates Just Fell Through the Floor. Here's How Much You Can Save

Written by Tim Lucas

Published September 5, 2025 1 min read

Mortgage Rates Just Fell Through the Floor. Here's How Much You Can Save

The Bottom Line

A homeowner might save up to $346 per month after today's precipitous rate drop.

Mortgage rates dropped precipitously after an employment report that could point to dark storms on the horizon for the economy.

Rates dropped to a 6.29% average according to Mortgage News Daily, the best levels since October 2024. The 30-year mortgage rate has been substantially higher for most of the past three years. This might give anyone who purchased a home since late 2022 a chance of lowering their payment.

Estimated monthly savings were as high as $346 per month for those who purchased their homes around November 2023.

We took a look at how much someone could save based on today's rates based on when they first purchased their home, going back to September 2022.

Estimated monthly savings based on original home purchase date, based on current refi rates.

Potential Savings Based On Home Purchase Date

Purchase Date	Average Rate at the Time	Potential Savings if Refi Today
9/1/22	5.66%	$(142)
10/1/22	6.66%	$85
11/1/22	6.95%	$153
12/1/22	6.49%	$46
1/1/23	6.48%	$44
2/1/23	6.09%	$(45)
3/1/23	6.65%	$83
4/1/23	6.28%	$(2)
5/1/23	6.39%	$23
6/1/23	6.79%	$115
7/1/23	6.81%	$120
8/1/23	6.90%	$141
9/1/23	7.12%	$193
10/1/23	7.49%	$281
11/1/23	7.76%	$346
12/1/23	7.03%	$171
1/1/24	6.62%	$76
2/1/24	6.63%	$78
3/1/24	6.88%	$136
4/1/24	6.82%	$122
5/1/24	7.22%	$216
6/1/24	6.99%	$162
7/1/24	6.95%	$153
8/1/24	6.73%	$101
9/1/24	6.35%	$14
10/1/24	6.12%	$(39)
11/1/24	6.79%	$115
12/1/24	6.69%	$92
1/1/25	6.91%	$143
2/1/25	6.89%	$139
3/1/25	6.63%	$78
4/1/25	6.64%	$80
5/1/25	6.76%	$108
6/1/25	6.85%	$129
7/1/25	6.67%	$87
8/1/25	6.63%	$78
9/1/25	6.50%	$48

Depending on when a homeowner purchased, savings can be substantial. Rates can go back up at any time, so homeowners should contact a lender if they think they can drop their rate and payment.

Check your homebuying eligibility. Updated May 21, 2026.

Article Sources

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About The Author:

Tim Lucas began his mortgage career in 2001 at Washington Mutual, reviewing wholesale loan files submitted by mortgage brokers. In the mid-2000s, he transitioned to retail lending at M&T Bank as a Mortgage Loan Processor, working everyone from first-time buyers to jumbo buyers financing $1–5 million homes.

Tim later launched his own loan processing company while originating loans for his own clients including FHA and USDA loans for first-time buyers. He eventually became a Mortgage Processing Supervisor, leading a team of processors. There, he earned a reputation as a solutions-oriented processor who could solve complex loan scenarios and uncover obscure solutions.

In 2013, Tim transitioned to mortgage education, creating trusted content for sites like MyMortgageInsider.com and TheMortgageReports.com. Today, he blends 10+ years of hands-on mortgage experience with a decade in consumer education at Three Creeks Media, where he leads MortgageResearch.com. Tim is also a licensed Loan Originator (NMLS #118763).