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Mortgage rates fall to 10‑month low, offering relief for Springfield, Illinois buyers
Redfin Real Estate economists say the recent dip in mortgage rates gives serious house hunters a window of opportunity to lock in a lower monthly housing payment.
The daily average mortgage rate dropped to 6.57% on August 4th – the lowest level in 10 months. That’s down from a peak of 7.08% in May, giving buyers some relief after months of higher rates.
In Springfield, Illinois, where the median sale price is $190,167, the recent rate drop translates to hundreds of dollars in savings. The monthly mortgage payment on a home at that price is now $1,306 with a 6.57% mortgage rate, compared to $1,361 back in mid‑May when rates were above 7% – a difference of $55 a month and $19,788 over the lifetime of the mortgage.
Why did rates fall?
Mortgage rates fell following a weaker-than-expected July jobs report. The U.S. added fewer jobs than anticipated, and the unemployment rate ticked up, which improved the chances of the Fed cutting interest rates in September. Mortgage rates fell in anticipation of a rate cut next month.
What buyers and sellers should know
“This dip in mortgage rates gives house hunters a window of opportunity to buy before summer ends,” said Daryl Fairweather, Redfin’s chief economist. “While housing costs are still fairly high, the recent decline in rates boosts purchasing power and improves overall homebuying conditions. Combined with the surplus of homes for sale on the market, serious buyers may want to jump in sooner rather than later.”
House hunters should take note that there are hundreds of thousands more home sellers than buyers in the market, giving many prospective buyers an opportunity to negotiate home prices down and ask for concessions. But the gap between sellers and buyers is starting to shrink as new listings decline, with would-be sellers opting to stay put instead of listing their home in a buyer’s market.
If you’re planning to buy, getting preapproved for a mortgage can give you a better sense of your budget – and help you move quickly when you find the right home.
Methodology
According to a recent Redfin report. Redfin calculated the drop in monthly payments using a 15% down payment, the local median home-sale price, property tax rate, homeowners insurance rate, and the average 30-year fixed mortgage rates on May 21st and August 4th, 2025. The median sale price reflects a 6-month moving average covering January-June 2025. Lifetime costs are based on 360 equal monthly housing payments.
This story was
produced by
Redfin Real Estate and reviewed and
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