Falling Rates Could Save Homebuyers $40K+ [LendingTree Report]

LendingTree's analysis shows the average APR for 30-year, fixed-rate mortgages across the U.S. dropped by 0.51 percentage points between July 2024 and July 2025. That drop could save borrowers roughly $40,000 over the life of a 30-year loan. Here's a quick look at the numbers:

• Over the past year, the average APR on a 30-year fixed mortgage dropped from 7.19% to 6.68%.
• The average monthly mortgage payment dropped by about $112, adding up to roughly $1,340 a year.
• Homebuyers in D.C., Massachusetts, and California are seeing the biggest break. Monthly mortgage payments in these states dropped by about $210 on average, which adds up to roughly $76,000 in savings over 30 years.
• Minnesota, South Dakota, and Wisconsin saw the smallest declines. Monthly payments in these states fell by around $25 to $30, still adding up to nearly $10,000 in savings over the life of a loan.

You can check out the full report here: https://www.lendingtree.com/home/mortgage/rising-mortgage-rates-study/

LendingTree's Chief Consumer Finance Analyst, Matt Schulz, had this to say:

“You have much more power over mortgage rates than you think you do. You can shop around for the best rates. You can pay points to bring down your APR. You can consider a 15-year mortgage instead of a 30-year mortgage. Just make sure that you do your homework so you know what you’re getting into before you act.”