While summer heats up, home mortgage rates are experiencing a cool-down. As of July 3, 2025, the average rate for a 30-year conforming loan was 6.68%, while the average rate for a 30-year jumbo loan had dropped to 6.69%—both reaching their lowest levels since early April.¹ 

“The declining rates, although modest, are bringing a sense of relief to prospective homebuyers and real estate investors,” said Brett Hively, Senior Vice President and Mortgage Capital Markets and Financial Strategist at Ameris Bank.

How Falling Rates Could Shape Buyer Behavior

The impact of the recent moderate dip in interest rates on homebuying remains to be seen, especially as home prices continue to climb. In May 2025, the median sales price of an existing home reached $422,800—marking the 23rd straight month of year-over-year increases.² 

"When interest rates decrease, borrowing becomes more affordable, which can drive up demand and prices," Hively said. “It can also encourage more sellers to enter the market.” 

Inventory is indeed growing, with 1.54 million homes available in May—a 20.3% increase from a year earlier.³

Home Buyers Have Less Competition

As July begins, buyers are navigating a market with more options and slightly less urgency. While mortgage demand has shown signs of strength in recent weeks, the growing inventory—34% more sellers than buyers⁴—and steady interest rates are giving buyers more breathing room.

“The current environment presents buyers with an opportunity to explore a broader range of properties, negotiate favorable prices and terms with sellers, and feel less pressured to make quick decisions,” said Hively.

Financing Strategy in a Changing Market

As the housing market continues to evolve, many buyers are finding more opportunities to make informed, strategic decisions. With inventory on the rise and mortgage rates easing slightly, financing remains a critical part of the homebuying equation. Aligning loan structures with long-term financial goals can help support more confident and sustainable homeownership—especially in a market where conditions can shift quickly.


Sources:
¹ https://www2.optimalblue.com/obmmi
^{2, 3} https://www.nar.realtor/newsroom/nar-existing-home-sales-report-shows-0-8-increase-in-may
⁴ https://www.redfin.com/news/sellers-vs-buyers-price-impact/


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Ameris Bank does not endorse nor is affiliated with the companies listed in this article.