What’s Going on with Mortgage Rates in TN? Why Buyers Are Still Showing Up in 2025

If you've been watching the real estate headlines, you've probably noticed something strange: mortgage rates are still hovering around 6.6%, and yet, homes are selling fast — especially here in Middle Tennessee.

So what gives? Shouldn’t high rates mean a slow market?

Let’s break down why buyers are still active across cities like Nashville, Mount Juliet, Murfreesboro, and Franklin — and what it means for both buyers and sellers in 2025.

📉 Mortgage Rates Are Still High... But Not That High

The average 30-year fixed rate loan is sitting around 6.6% as of mid-April — down slightly from the highs we saw in 2023, but still significantly above the 3% days of 2021.

But here's the kicker: many buyers have already adjusted their expectations. Instead of waiting for rates to drop again (and risk rising prices), they're getting creative with financing or jumping in now while inventory is decent.

🏡 Buyer Activity Is Surging This Spring

Even with elevated rates, mortgage applications rose by over 11% nationally this month, and we’re seeing that same momentum locally in Middle TN.

Why?

More inventory is hitting the market as spring listings roll out.
People relocating from out of state (hi California buyers 👋) still see Middle Tennessee as a deal.
Sellers are more negotiable than they were during the 2021 frenzy.
Buyers know they can refinance if rates drop later — but can’t always get the same house again.

🔑 What This Means If You're Buying

If you're shopping for a home right now in Tennessee, here's the playbook:

Know your numbers. A 6.6% rate doesn’t mean game over — talk to a lender (like our In house lender👀) to explore buy-downs, adjustable-rate loans, or creative financing options.
Focus on monthly payment, not just rate. A slightly higher rate might still fit your budget if home prices are more reasonable than what you would’ve paid in 2022.
Move fast if you love it. Homes in hot suburbs like Nolensville, Hendersonville, and College Grove are still seeing multiple offers if priced right.

💰 What This Means If You're Selling

It’s still a good time to sell — but price it right.

Buyers are picky. They’re not throwing money at every listing like they were in 2021. Homes that are:

Move-in ready
Well-marketed
Priced with the current rates in mind

…are selling quickly, often with multiple offers.

🧠 Bottom Line

Middle Tennessee is still a magnet for buyers in 2025, and mortgage rates — while not ideal — aren’t slowing things down like you'd expect.

If you're thinking of buying, selling, or just want to understand your options, let’s talk. We’ll help you run the numbers, explore financing, and make a move when the time is right — not just when the market says so.