by Ben Whedon
Mortgage rates on Thursday hit a year low for 2025, with a 30-year fixed mortgage rate dropping to 6.233%.
The figure represented a 0.09% drop from the day prior, according to Mortgage Reports. The 20-year mortgage rate stood at 5.9% while the 15-year mortgage fell to 5.584%.
In the U.S., the national median sales price for existing homes is about $415,200 while in Tennessee, the typical home is far more affordable with a median sale price at around $392,100 as of September 2025 – up about 2.4% year-over-year. But in the Nashville, prospective homeowners will see that number skyrocket to about $460,000 for an average home selling price. At this level, a lower mortgage rate drop of a single percentage point can increase a buyer’s purchasing power by roughly 10%, meaning more of their monthly payment goes toward the home itself rather than the cost of borrowing.
For example, on a $400,000 home loan, dropping from 7.2% to 6.2% cuts the monthly principal-and-interest payment by about $270 – or roughly $3,240 annually. Over the life of a 30-year mortgage, borrowers would save just over $97,000.
Zillow Home Loans senior economist Kara Ng told the outlet that “Markets now see an October rate cut as near certainty, as alternative data point to a cooling labor market that was already losing momentum before the data blackout.”
Housing affordability has increasingly become a prominent political issue, especially for younger voters. During the 2024 presidential campaign, Vice President J.D. Vance heavily emphasized the impact of immigration on the demand for and price of housing and essential services.
Some Republicans in Congress, moreover, have urged the GOP to take a more active approach to dealing with the issue. Rep. Marjorie Taylor Greene, R-Ga., for instance, has proposed eliminating capital gains taxes on home sales in a bid to encourage market movement.
“Homeowners who have lived in their homes for decades, especially seniors in places where values have surged, shouldn’t be forced to stay put because of an IRS penalty,” Greene said. “My bill unlocks that equity, helps fix the housing shortage, and supports long-term financial security for American families.”
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Ben Whedon is the Chief Political Correspondent at Just the News. Follow him on X. Christina Botteri, the Executive Editor of The Tennessee Star and The Star News Network, contributed to this report.
