Some housing markets are so expensive that they would still be unaffordable even if rates plummeted. In other areas, a small decline in rates would be enough to make homeownership possible for many buyers. A 2025 Zillow report found that mortgage rates nationwide would need to fall more than. 4% to make the typical home affordable for a median-income family. Currently, the average mortgage rate on a 30-year, fixed- interest loan is around 6.18%. The study assumed a 20% down payment and defined affordability ...