If you’ve been keeping an eye on the housing market here in Tennessee, you’ve probably seen some good news: mortgage rates just experienced their biggest drop in a year. For buyers across the state—from Nashville to Chattanooga, Cookeville to Knoxville—this shift could open the door to homeownership sooner than you thought possible.

What This Means for You

Lower rates can have a big impact on your monthly payment, which may give you the ability to:

-Afford more home without stretching your budget. Many buyers are now qualifying for $20,000–$30,000 more than they could just weeks ago.

-Pay less for the same home. In some cases, monthly payments are $100–$200 lower compared to just three weeks ago.

-Step into the market with confidence. Locking in now means securing savings over time, giving you peace of mind for the future.

Chart Source: Keeping Current Matters, “Mortgage Rates Just Saw Their Biggest Drop in a Year,” Sept. 10, 2025

Why Now Could Be the Right Time

At Banner Built Homes, we believe in creating homes that are not only beautiful but also attainable. A change in mortgage rates isn’t just a headline—it’s an opportunity. As you can see in the chart below, rates are at their lowest point in over a year, making this the best time to lock in your advantage.

Source: Freddie Mac, Primary Mortgage Market Survey® (PMMS®). Data shown for illustrative purposes.

Won’t Rates Keep Dropping?

No one can predict the future. Historically, when rates fall significantly, they’re often followed by an increase. That’s why it’s smart to secure today’s lower rate before the market shifts again.

And here’s the good news—if rates fall further, you can always refinance to capture the lower number permanently. But keep in mind: when rates dip even more, competition in the market heats up fast, making it harder to find and secure your dream home.

Explore Your Options in Tennessee

Whether you’re buying your first home or moving into your next chapter, this rate shift is worth paying attention to. Our team works closely with trusted Tennessee lenders who can walk you through exactly how today’s rates affect your buying power.

Take the next step: Explore our available homes and see how this moment in the market could help you move forward. Missing this window could mean the difference between making homeownership a reality—or missing out entirely.

Book an appointment with our Preferred Lender or connect with one of our friendly New Home Sales Counselors today to get started!