Mortgage Rates Take a Dip But Don’t Expect the Pandemic Era to Return

The average rate on a 30-year fixed mortgage just made its biggest one-day drop in more than a year, bringing some welcome relief to homebuyers who have been watching rates climb steadily. Still, even after the fall, the average stands around 6.29%, according to Mortgage News Daily — far higher than the sub-3% levels seen at the beginning of the pandemic.

While the latest movement hints at better days ahead, housing experts caution that buyers shouldn’t expect rates to tumble back to the ultra-low environment of 2020 and 2021. Instead, the path forward looks steadier, with a few smart strategies still available for those who want to land the best possible deal.

Where Mortgage Rates Stand

Signs continue to point toward a potential interest rate cut when the Federal Reserve meets on September 17. If that happens, borrowers could see additional downward pressure on mortgage rates. Even though 15- and 30-year fixed mortgages aren’t directly tied to the Fed’s benchmark rate, shifts in the central bank’s policy often influence broader financial markets and lender behavior.

“Consumers should view 6% as the new normal through the early part of next year,” said Lawrence Yun, chief economist at the National Association of Realtors. “Expecting 4% or 5% — I don’t think it will happen.”

In other words, while small declines are possible, today’s mortgage market is more about managing expectations and optimizing your personal financial picture rather than waiting for dramatic drops.

Three Ways to Get a Lower Mortgage Rate

Even in a higher-rate environment, borrowers still have tools to bring their mortgage costs down. Financial experts highlight three key areas of focus: credit, down payment, and loan type.

1. Strengthen Your Credit Score

Your credit score plays the starring role in determining your mortgage rate. “If you have a higher FICO score, you are going to get a better rate,” said Scott Lindner, national sales director for real estate and secured lending at TD Bank.

A “good” credit score typically starts around 670, while a score above 740 is considered “very good,” and anything over 800 is “exceptional.” The difference between a 700 and 780 score can translate into thousands of dollars saved. For example, on a $350,000 loan, a borrower with a top-tier credit score could save roughly $13,000 in interest compared to someone with a lower rating, according to LendingTree.

Improving your score starts with simple consistency: pay every bill on time, keep credit card balances below 30% of your available limit, and avoid opening too many new accounts at once. Also, review your credit report for errors. A single incorrect late payment can drop your score by 50 points or more, said Matt Schulz, LendingTree’s chief credit analyst.

2. Boost Your Down Payment

A larger down payment shows lenders that you’re invested in the purchase, which often results in a lower rate. “Borrowers who put 20% down would definitely get a lower mortgage rate because there is more skin in the game,” Yun said.

Putting down 20% also helps you avoid private mortgage insurance (PMI), saving thousands over the life of your loan. However, Schulz acknowledged that for many Americans, especially first-time buyers, a 20% down payment isn’t realistic. The average down payment for first-time buyers last year was just 9%, according to the National Association of Realtors.

Still, even small increases in your down payment can improve your rate and reduce monthly payments — a valuable goal to aim for as you budget and save.

3. Explore Beyond the 30-Year Fixed

While the 30-year fixed mortgage remains the most popular option, it isn’t the only one worth considering. Adjustable-rate mortgages (ARMs) can offer lower introductory rates, which may appeal to buyers planning to move or refinance within a few years.

Currently, a 7/6 ARM averages about 5.59%, nearly three-quarters of a point lower than a standard 30-year fixed. “A seven-year ARM gives people the chance to take advantage of a lower rate today,” Lindner said. “If you think rates will go down, you can always refinance in the future.”

However, ARMs aren’t ideal for everyone. Yun noted they tend to suit younger buyers who anticipate upgrading homes later. For long-term homeowners, the predictability of a fixed-rate loan often provides greater peace of mind.

Mortgage rates may be drifting lower, but experts agree that today’s housing market has found a new equilibrium. A return to pandemic-era lows isn’t on the horizon, yet buyers who take proactive steps — improving credit, saving for a larger down payment, and considering alternative loan structures — can still secure favorable terms.

In a market defined by adjustment rather than anxiety, smart preparation remains the most reliable path to making homeownership affordable.

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Six Storybook Louisiana Towns That Deserve a Spot on Your Travel List

There’s a certain enchantment to Louisiana’s small towns that you feel the moment you turn off the highway—brick streets giving way to river breezes, church bells mingling with zydeco, and neighbors who wave like they’ve been expecting you. From the red-brick romance of Natchitoches to the festival-loving streets of Gretna and the hill-country warmth of West Monroe, each place tells its own tale. If you’re plotting a road trip that blends history, nature, and culture, these six towns belong on your list.

Start with Natchitoches, the state’s oldest permanent settlement and a town that wears its history lightly but proudly. In December, the Cane River shimmers under thousands of lights, and the Christmas Festival turns the riverfront into a glowing promenade that lasts through New Year’s. The seasonal dazzle sits alongside everyday touchstones: meat pies that locals debate with friendly seriousness, Creole plantation stories preserved at Cane River Creole National Historical Park, and the reconstructed Fort St. Jean Baptiste, which makes the early French frontier feel close enough to touch. Families mix history with a little adrenaline at Gator Country Louisiana Alligator Park, where 250-plus gators remind you that wild Louisiana is never far away.

Downriver, Gretna spreads out along the west bank of the Mississippi with a rhythm all its own. In fall the Gretna Heritage Festival takes over the streets with three days of music, food, and art—an event that grew from a neighborhood gathering into a regional draw where local favorites share the bill with marquee performers. When the stages go quiet, the town stays active: cyclists trace the Mississippi River Trail past levee views and tugboats; the Gretna Museum Complex opens doors to Creole cottages, a firehouse past, and a working blacksmith shop; the German-American Cultural Center adds a thread of immigrant history that still runs through the parish. Gretna is festive, but it’s also layered—its river, its museums, its neighborhoods all part of a living timeline.

Head south to Thibodaux, the “Queen City of Lafourche,” where Cajun life unfolds along Bayou Lafourche. It’s a family town at heart: the Bayou Country Children’s Museum lets kids bang out a tune on a giant floor piano and play their way into local traditions, while the Wetlands Acadian Cultural Center tells the bigger story—boat rides, films, and music that explain how the bayou shaped the culture. History threads right through town at the E.D. White Historic Site, an elegant cypress home that belonged to a Louisiana governor and later a U.S. Chief Justice. Inside, exhibits trace Chitimacha roots, sugarcane fortunes, and changing life on the water. Step outside and you’re back on downtown streets lined with cafés, murals, and shops where the pace is unhurried and the greetings are genuine.

Morgan City calls itself “right in the middle of everywhere,” and it feels that way—close to Lafayette, close to the Gulf, close to cypress-shadowed lakes where weekends stretch long. Lake End Park is the easy choice for campfires, cabin stays, fishing, and playground time; the petting zoo keeps little travelers smiling. For quiet beauty, Brownell Memorial Park spreads 9.5 acres along Lake Palourde, with a 106-foot carillon tower whose 61 bells mark the quarter hours like a gentle clock for the whole sanctuary. Then there’s “Mr. Charlie,” the offshore drilling rig turned museum—one of a kind, and a chance to walk the steel decks that helped define the region’s modern economy. Morgan City balances outdoorsy ease with industrial grit, and that mix is part of its charm.

In Gonzales, jambalaya isn’t just dinner—it’s identity. Since 1968 the Jambalaya Festival has drawn crowds for music, rides, and a wood-fire cook-off where smoke curls into the spring sky and friendly rivalry rules the day. You learn quickly that recipes are family heirlooms and technique matters: the stir, the heat, the patience. Between festivals, Jambalaya Park offers walking paths, a splash pad, fishing along Bayou Francois, and an amphitheater for community events; the Olympic-size pool, operated by the YMCA, turns summer into swim season. Small travelers burn energy at Lil Bambinos Playtorium, a kid-sized town built for imaginative play. Bargain hunters make a day of Tanger Outlets. Gonzales is festive, but it’s also practical—easy for families, full of green space, and proud of what it cooks best.

Curve north and the scenery shifts to gentle hills in West Monroe, where around 13,000 residents keep a comfortable cadence. The Biedenharn Museum & Garden pairs a 1913 mansion with manicured English-style grounds and a Coca-Cola museum that nods to the family legacy—history, horticulture, and a dash of Americana in one stop. The Masur Museum of Art adds a modern note, bringing contemporary exhibitions to a historic setting and spotlighting Louisiana artists alongside national names. When the weather calls you outside, Restoration Park answers with 70 acres of wetlands and forest wrapped around a stone-lined lake, its cypress draped in Spanish moss. Landry Vineyards rolls out across sunlit hills nearby; tastings highlight Louisiana-grown wines that sit comfortably beside boudin, étouffée, and all the other flavors that make this state sing.

What ties these places together isn’t sameness but hospitality. In Natchitoches you’re invited to linger along the riverfront and try a meat pie the way someone’s grandmother makes it. In Gretna, a neighbor waves you toward the festival stage and tells you which food booth has the beignets worth standing in line for. Thibodaux shares its story in both French and English, in fiddle tunes and museum plaques. Morgan City offers sunrise on the lake and sunset from a rig deck turned museum platform. Gonzales hands you a spoon and dares you to pick a favorite pot. West Monroe pours a glass, points you to a garden path, and says take your time.

If you’re chasing the essence of Louisiana beyond the big-city glow, these small towns deliver it in generous portions—history that’s still being lived, landscapes you can wade into, and festivals where strangers become fast acquaintances. Map them into a loop or explore them one by one. Either way, you’ll come home with the kind of memories that make you plan the next trip before the first one’s even finished.

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Fannie Mae Forecasts Lower Mortgage Rates and Softer Home Prices Through 2026

After years of turbulence in the housing market, new forecasts suggest the next two years could bring long-awaited relief for homebuyers.

When inflation soared past 9% in 2022, the Federal Reserve raised borrowing costs aggressively, aiming to cool the economy. By late 2024, inflation had nearly returned to the Fed’s 2% target, prompting interest rate cuts. Many expected mortgage rates to dip below 6%. Instead, they climbed back toward 7%, leaving economists and homebuyers scratching their heads.

Why Rates Stayed Higher Than Expected

Despite rate cuts, stubborn inflation, global economic uncertainty, and volatile markets have kept mortgage rates elevated. The result: hesitant buyers, reluctant sellers, and a housing market stuck in neutral.

But new analysis from Fannie Mae offers a more optimistic outlook for the years ahead, with falling mortgage rates, rising sales, and slower home price growth on the horizon.

Mortgage Rates Could Drift Lower

At the Federal Reserve’s July 29 meeting, policymakers held rates steady, but the CME FedWatch tool shows a 65% chance of a cut in September. If that happens, investor confidence could improve, pushing mortgage rates back down.

Fannie Mae now projects the average 30-year fixed mortgage rate will fall to 6.4% by the end of 2025 and 6.0% by the end of 2026. While modest, these revisions are more favorable than the agency’s earlier predictions of 6.5% and 6.1%, respectively.

Lower rates could breathe life into the market. Fannie Mae has raised its sales forecast to 4.85 million homes sold in 2025 (up from 4.82 million) and 5.35 million in 2026 (up from 5.25 million).

Housing Prices May Cool

While affordability challenges remain the biggest barrier for first-time buyers, slower price growth could provide some relief.

According to Fannie Mae’s July update, annual home price appreciation is expected to slow to 2.8% in 2025 and 1.1% in 2026, down from prior forecasts of 4.1% and 2.0%. Rising inventory and weaker demand are likely to keep prices in check.

For sellers, slower growth may be a disappointment. But for buyers, stable home values paired with lower mortgage rates could mark a turning point after years of steep increases.

What It Means for Buyers and Sellers

Buyers may finally see a market with less price pressure, more inventory, and slightly lower borrowing costs—though affordability will still be a challenge.

Sellers may need to adjust expectations, as slower price growth and higher competition could soften returns.

The market overall is likely to move gradually back toward balance, with fewer extremes than in recent years.

Fannie Mae’s latest forecast suggests the housing market may be entering a period of stability. Mortgage rates are expected to decline gradually, sales should climb, and price growth will ease. For buyers who have been waiting on the sidelines, 2025 and 2026 may finally bring the window of opportunity they’ve been hoping for.

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Why Home Appraisals Matter in Real Estate

When buying or selling a home, emotions can run high — but when it comes to determining value, opinion doesn’t carry the day. That’s where a home appraisal comes in. A licensed appraiser provides an impartial, professional estimate of a property’s market value, ensuring that everyone involved — especially mortgage lenders — has confidence in the transaction.

Because the majority of home purchases involve financing, appraisals are a standard step in most sales. In fact, the National Association of Realtors (NAR) reports that 81% of primary residence purchases and 43% of vacation home sales are tied to mortgages, making appraisals a cornerstone of the housing market.

What Exactly Is an Appraisal?

An appraisal is a third-party assessment of a home’s worth, carried out by a certified appraiser. Unlike a listing price, which reflects the seller’s expectations, or a negotiated contract price, which reflects what the buyer is willing to pay, an appraisal is meant to establish an objective measure of value based on the property’s condition and local market data.

Lenders rely on this step before finalizing a loan to confirm that the property provides sufficient collateral. This protects the bank from over-lending and reassures the buyer that they aren’t overpaying.

How the Process Works

  • Who orders it? The lender usually requests the appraisal.
  • Who pays? Buyers typically cover the cost, which ranges from $325 to $1,000 depending on the home’s size, complexity, and location.
  • What happens? The appraiser visits the property, reviews its size, layout, and overall condition, and compares it to similar recently sold homes (known as “comps”). The findings are compiled into a detailed report delivered to the lender.

While in-person appraisals are the norm for home purchases, lenders may sometimes use alternatives like virtual or desktop appraisals for refinances or home equity loans.

Appraisal vs. Home Inspection

Though both occur during the buying process, an appraisal and an inspection serve very different purposes:

Appraisal: Determines the property’s fair market value.

Inspection: Evaluates the condition of the property’s systems, structure, and safety.

Inspections aren’t mandatory but are strongly recommended to help buyers understand potential repair costs before closing.

What the Results Mean

  • The appraised value can directly affect the transaction:
  • If the value matches or exceeds the purchase price, the sale typically moves forward.
  • If the appraisal comes in lower, buyers may renegotiate, request the seller to lower the price, or bring additional funds to closing — provided the contract has an appraisal contingency.
  • It’s important to note that appraisers are hired to represent the lender’s interest, not the buyer’s or seller’s. Their role is to provide an unbiased assessment that keeps the financing process on solid ground.

Why It Matters

For buyers, an appraisal is a safeguard against overpaying. For sellers, it provides a reality check on pricing expectations. And for lenders, it reduces risk by confirming that the loan is backed by adequate collateral.

In short, an appraisal is more than a formality — it’s a critical step that keeps real estate transactions fair, transparent, and financially sound.

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What Buyers and Sellers Need to Know in Late 2025

Halfway through 2025, the U.S. housing market remains stuck in uncertain waters. Buyers and sellers alike are facing challenges that trace back to the pandemic years: elevated mortgage rates, home prices that remain high compared to historical norms, limited inventory, and economic headwinds that keep confidence shaky.

Affordability is still the biggest hurdle. According to Harvard’s Joint Center for Housing Studies, home prices have climbed 60 percent since 2019, while the salary required to purchase a home has surged by 70 percent in the same period. Mortgage rates, hovering in the high-6 percent range, continue to put pressure on monthly budgets.

Even so, the story isn’t entirely grim. For those willing to pay close attention to shifting conditions, opportunities are beginning to emerge.

Mortgage Rates: High but Predictable

Borrowers are no longer spoiled with sub-3 percent rates as they were in 2021, but the good news is that rates have leveled out. For most of this year, they’ve hovered between 6.7 and 6.9 percent, and forecasts suggest they may dip slightly to the mid-6 percent range by year’s end.

That kind of stability, though costly, gives buyers a chance to plan. Running “what if” scenarios on a mortgage calculator — adjusting rates by half a point up or down — provides a realistic picture of payment ranges and can help households prepare financially without the fear of sudden spikes.

More Homes on the Market, Prices Cooling

Perhaps the biggest shift in 2025 is the supply of homes. After years of scarcity, inventory has risen. In June, the National Association of Realtors reported a 16 percent year-over-year increase, bringing supply to 4.7 months — still below pre-pandemic levels but the healthiest reading in years.

More listings mean buyers have more choice and less pressure to rush into bidding wars. It also slows price growth. Instead of the double-digit jumps seen in 2022, prices are rising at a fraction of that pace: just 0.2 percent in June, with the median list price landing around $441,000.

The Rising Cost of Staying Put

Even after securing a fixed-rate mortgage, homeowners are discovering that monthly payments aren’t as predictable as they once were. Property taxes have risen in step with home values, climbing 12 percent from 2021 to 2023. Insurance has proven even more volatile: premiums jumped 24 percent between 2021 and 2024, largely due to the growing impact of natural disasters.

For buyers, that means budgeting shouldn’t stop at principal and interest. Taxes and insurance can be significant — and rising — expenses that determine whether a home truly fits within long-term financial plans.

Sellers Adjust Expectations

On the selling side, there’s a noticeable shift in attitude. With more homes competing for fewer buyers, price reductions are becoming common. Nearly one in five listings saw a cut in June, the highest share for that month in nearly a decade.

That trend signals realism taking root. Sellers are less likely to expect bidding wars or offers well above asking price. Instead, they’re using discounts as a negotiation tool, which gives buyers leverage they haven’t had in years.

A Market Finding Its Balance

The market is far from easy, but it is evolving toward a healthier balance. Buyers no longer need to panic-buy, and sellers are starting to recognize the importance of pricing strategically. As Hannah Jones of Realtor.com notes, those who follow these shifts closely will be best positioned: buyers can move quickly when opportunities appear, while sellers can adjust to attract serious offers.

For anyone planning a move in the second half of 2025, the key is preparation. Understand your budget, monitor local trends, and be ready to act when conditions line up. The post-pandemic housing market may be challenging, but for informed buyers and sellers, it’s also becoming more navigable.

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