How the Recent Interest Rate Drop Could Save Arizona Homebuyers Thousands

More great news for homebuyers—For the second time this year, mortgage interest rates have dipped—bringing a welcome boost for Arizona homebuyers. As of August 11, 2025, the average 30-year fixed-rate mortgage is 6.575%, according to Freddie Mac’s Primary Mortgage Market Survey.

Even a small decrease in interest rates can create big savings:

• Example 1 – Same Loan Amount, Lower Payment
  Loan amount: $400,000
  At 6.74%: $2,592/month
  At 6.575%: $2,554/month
  💰 Savings: $38/month = $13,680 over 30 years
  
  
• Example 2 – Same Payment, Higher Loan Amount
  Target payment: $2,592/month
  At 6.74%: $400,000 loan
  At 6.575%: $405,900 loan
  Buying Power Increase: +$5,900 without raising your payment
  
  
• Example 3 – Larger Budget, Bigger Homes
  Target payment: $3,000/month
  At 6.74%: $462,400 loan
  At 6.575%: $469,400 loan
  🏡 Extra Buying Power: +$7,000

Disclaimer: These figures are for illustrative purposes only and assume a 30-year fixed-rate mortgage with 20% down, excluding taxes, insurance, and HOA fees.
Actual loan terms will vary based on factors such as credit score, debt-to-income ratio, and down payment amount.

Why Now Is a Strategic Time to Buy

With less competition in the late-summer market and slightly better affordability, buyers can position themselves for stronger negotiations. Locking in a lower rate now can protect you from potential increases later this year.

Whether you’re a first-time buyer or looking to upgrade, this shift could be the window you’ve been waiting for.

– Jenna Sanchez, Realtor®
@phoenixfamilyrealtor | Realty ONE Group