As mortgage rates recede to their lowest levels in years, experts say that shopping around for the right loan could save first-time home buyers tens of thousands of dollars.
The average rate for a conventional 30-year mortgage across the U.S. fell this week below 6%, down almost an entire percentage point from January of 2025 and the lowest since 2022, according to data from Freddie Mac.
Better rates are expected to attract more house-hunters as the spring buying season heats up. But experts advise buyers not to settle until they’ve shopped around, noting that rates can vary a lot depending on the lender. The average gap between the lowest and highest APR is 0.74 percentage points, according to LendingTree, an online loan marketplace.
How much can I save?
Although experts don’t expect mortgage rates to decline much further this year, predicting they will hover around 6% for a 30-year loan, they said homebuyers can now find lower-cost loans as lenders compete for business.
“We’re seeing a lot more dispersion with what lenders are quoting,” Kate Wood, a lending expert at NerdWallet, told CBS News. “So at any time, absolutely, you should be requesting rate quotes from multiple mortgage lenders.”
The lowest average APR for a 30-year loan is 5.82%, according to LendingTree. Compared with the highest average APR of 6.56%, that lower rate could save borrowers nearly $58,000 over the life of the loan, or about $1,930 annually, LendingTree calculated.
At 5.82%, versus the national average of 5.98%, a borrower could save $12,352 over the life of a 30-year home loan, according to Matt Schulz, chief consumer finance analyst at LendingTree.
As usual, securing a low rate hinges on an individual’s credit record, while other factors that can affect borrowing costs include how much a buyer can put down for a home and a loan’s duration.
LendingTree based its calculations on the lowest average loan offers that homebuyers who use its platform received from lenders between January 1 and February 26.
Even if home buyers don’t qualify for a lower rate, they can still benefit by comparing rates, Schulz told CBS News. “It only takes a small fraction of a percent movement to potentially save tens of thousands of dollars over the life of the mortgage.”
Schulz emphasized that by shopping around, buyers can solicit competing loan offers, which can help in negotiating the best terms with their preferred lender.
“It’s hard to overstate the importance of a lower interest rate with a mortgage, just because it is, for most people, the biggest purchase they’ll ever make,” he said.
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