Interest Rate Drop: What It Means For You

If you’ve been looking to buy a home this year, you may know that interest rates have been a hot topic. This week, the Federal Reserve announced the first of several anticipated rate cuts that are sure to have an impact on 2025 homebuyers. 

In short, these national-level rate cuts often lower the average mortgage interest rate, though it can take a while to see the effects. However, you may not need to wait to lock in¹ a low interest rate. Let’s dive into what the latest rate cut means for you. 

What Changed? 

The recent change to interest rates comes straight from the Federal Reserve. The central bank of the United States, the Federal Reserve is responsible for setting a target range for the interest rate banks must pay to borrow funds from one another overnight, referred to as the federal funds rate. This number represents how much it costs banks to borrow money. 

As of September 17, the Federal Reserve dropped its rate by 0.25%. While this may seem like a slight change, this is the first rate cut since 2024. Though there's no way to definitively predict future rate changes, there is some speculation that further rate cuts may follow in the coming months. 

How Does This Affect Homebuyers? 

While the recent Federal Reserve announcement doesn’t directly affect mortgage interest rates, it’s likely homebuyers will see changes in the market soon. Lenders are likely to lower their interest rates in response to the news, but the effects may not be immediate. 

Lower rates may also result in a more competitive housing market. As the cost of borrowing goes down, homebuyers who have been putting off their home search may rejoin the fray.  

What's the Market Interest Rate Now? 

Rates will always vary individually based on your loan program, terms and creditworthiness. With that in mind, the average 30-year fixed rate was 6.59% in August 2025 based on Freddie Mac's weekly Primary Mortgage Market Survey. 

To find the latest average weekly rate, visit FreddieMac.com/PMMS.

When Can I Get a Low Interest Rate? 

You may be able to get a great interest rate as early as today! While the recent rate drop will take some time to affect the market overall—and no one knows how much interest rates will actually drop, there are options today for locking in¹ a lower rate when purchasing a select Lennar home. 

One popular option is our Special Financing interest rates. These are exclusively available to homebuyers purchasing a select Lennar home  who finance through Lennar Mortgage, LLC. These rates are home-specific, so ask your local Loan Officer what’s available near you. 

Combine a Special Financing interest rate with one of our competitive loan programs to create your dream loan! These great rates are limited, so be sure to lock¹ yours in now. To get started and connect with a Loan Officer, get pre-qualified today. ² 

What Resources Can Help Me Buy A Home Now? 

When considering when to buy, don’t forget to take into account which loan programs can help you! From down payment assistance programs to seller incentives, the loan programs you choose will have a huge impact on home affordability. These programs often have limited funds, meaning it’s important to lock¹ them in before demand skyrockets. 

Here are a few popular loan programs that are available to Lennar Mortgage, LLC homebuyers right now! 

• Lennar Mortgage Advantage Plus: Offering up to 5% in down payment assistance, this program allows qualified homebuyers to close on their dream Lennar home with little to no up front cost! 
• The Breathe Easy Program: Available only on select Lennar homes, the Breathe Easy program allows qualified homebuyers to get up to 6 months of interest-free mortgage payments. These savings can help you offset moving expenses and adjust into homeownership. 
• Area-Specific Down Payment Assistance: Another great resource for homebuyers are local down payment assistance options, like Florida’s Hometown Heroes program. Ask your Loan Officer about what’s available in your area! 

Which programs you may qualify for depends on factors including your financial history, your area and the home you choose. Ask your Loan Officer which programs may make sense for you! 

Is Now the Right Time to Buy? 

No one can predict exactly how the market will react to a lower federal reserve rate. Whether it’s the right time to buy a home depends on you!  

More than market conditions, what really matters is your specific situation. If you’ve been saving up for a down payment, if your square footage needs are growing or if you’re moving to a new area, the time may be right for you to buy a new home! There are a ton of reasons to buy sooner rather than later, but the right time to buy is different for everyone. 

If you’re ready to take the first step towards your dream home, we’re here to help. Get pre-qualified² online in just minutes to get started!

¹A non-refundable long-term lock-in fee may apply (unless prohibited by state law). This fee can be applied to the payment of customer's settlement charges at loan closing. ²Requesting a loan prequalification and making a loan application does not constitute a loan approval or otherwise indicate that a consumer has or will qualify for a loan from Lennar Mortgage, LLC [or any other lender]. Prequalifying with Lennar Mortgage, LLC is voluntary and is not required in order to obtain a loan from Lennar Mortgage, LLC and/or purchase a home from Lennar Corporation or any of its affiliated homebuilders. Prequalification does not (a) constitute a loan approval or indicate that you have or will qualify for a loan from Lennar Mortgage, LLC [or any other lender], or (b) guarantee you will qualify to purchase a Lennar home. The content provided herein is for informational purposes only. Nothing herein shall constitute legal, tax, investment or financial advice. No representation is made regarding your ability to qualify for a home loan, your ability to improve your credit score, or the availability of a home or loan product that meets your needs. Model(s)/lifestyle photo does not reflect racial or ethnic preference. Lennar Mortgage, LLC - NMLS # 1058. © 2025 Lennar Mortgage, LLC. All rights reserved. Lennar Mortgage and the Lennar Mortgage logo are U.S. registered service marks or service marks of Lennar Corporation and/or its subsidiaries.