Rates Plummet and Inventory Picks Up

A Prime Opportunity for Homebuyers: Rates Plummet and Inventory Picks Up

A Refreshing Dip in Mortgage Rates

As of August 13, 2025, the average 30-year conventional fixed mortgage rate stands at 6.53%—a notable daily drop of about 0.05 percentage points. At the same time, the 30-year FHA rate has fallen to approximately 6.11%. These figures represent some of the lowest levels in recent months Mortgage News Daily+2Mortgage News Daily+2.

These drops in rates are significant. They not only make monthly mortgage payments more affordable but also enhance borrowing power, translating into potentially hundreds more in purchasing budget for qualified buyers.

Inventory Is Finally Catching Up—and Then Some

Simultaneously, housing supply is rising across the U.S.—marking a strong shift toward a true buyer’s market:

• In June 2025, housing inventory surged 28.9% year-over-year, per Realtor.com data Investopedia.

• In July, active listings grew another 24.8%, with the total hitting over 1.1 million—the 21st consecutive month of growth The Mortgage Reports.

• July's national listing growth was also 24.8%, the largest annual increase recorded in Realtor.com’s Monthly Housing Report The Mortgage Reports.

• More recent data show U.S. housing inventory up 24.8% year-over-year as of July 2025, although still slightly below pre-pandemic levels New York Post.

These trends mean more options, more leverage, and more negotiating power for buyers.

Signs That Buyers Are Gaining the Upper Hand

• As of May 2025, 56% of homes sold for under asking price, with the typical home closing around $45,000 below the list price. Homes are also lingering on the market longer—averaging 58 days, up about a week from a year ago New York Post.

• Builders report a cooling environment: existing-home sales fell to a nine-month low in June, though inventory hit its highest level since May 2020 at 4.7 months’ supply Kiplinger.

• In San Antonio, sellers are using aggressive incentives—like paying closing costs or bundling appliances—to attract buyers amid slowing transactions and longer listing times. The average home now takes 75 days to sell, up 17% from a year prior San Antonio Express-News.

Overall, these signs emphasize that buying conditions have tilted clearly in favor of purchasers—even if interest rates have not yet returned to the historic lows seen years ago.

What Does This Mean for Prospective Buyers?

If you’re financially ready, now is an opportune moment to explore homeownership or refinance options—particularly in markets where inventory has surged and sellers are more open to negotiation.

Final Takeaway

The combination of slumping mortgage rates—6.53% for conventional and 6.11% for FHA—and rising housing inventory underscores a clear shift toward a buyer-favored market. Whether you're a first-time buyer or looking to refinance or upgrade, today's market conditions deliver leverage and opportunity.