Mortgage rates may currently remain elevated (and are on the way up), but according to Zillow, nearly half of recent homebuyers were able to secure a mortgage with a rate below 5%.

Specifically, data from Zillow’s Consumer Housing Trends Report 2024 (derived from a survey fielded between March and September of 2024, including approximately 18,500 homebuyers) shows that roughly 45% of recent buyers managed to get a mortgage interest rate below 5%. That’s despite the 30-year fixed rate not averaging 5% or below for a whole week since August of 2022, according to Freddie Mac. The government-sponsored enterprise’s widely watched weekly average mortgage rate tracker had the 30-year fixed rate pegged at 6.72% as of Oct. 31.

In fact, per Zillow’s data, just 36% of recent homebuyers ended up with a mortgage rate above 6%.

How were so many of those homebuyers able to get such a favorable interest rate? By thinking outside the box and being resourceful.

Of those buyers, 35% were able to obtain a lower rate because the seller or home builder offered them special financing. Twenty-six percent received a sub-5% rate because they made their offer contingent on a rate buydown from the seller or builder. Another 25% refinanced to a lower rate after making their home purchase; 23% got a below-market rate because they borrowed from a friend or family member; and 23% bought points to lower their rate.

Just 19% — slightly under one-fifth — recent homebuyers with a sub-5% rate didn’t cite one of those five reasons for acquiring their below-standard rate. That share falls even further — down to 10%  — for borrowers who didn’t finance with an adjustable rate mortgage (ARM), receive downpayment assistance or opt for a loan term shorter than 30 years.

“This surprising finding really underscores the creativity of both buyers and sellers navigating today’s dynamic real estate market,” said Zillow home trends expert Amanda Pendleton. “Buyers are finding innovative ways to secure a lower mortgage rate, but sellers are also coming up with financing solutions to make their property more attractive to a potential buyer.

“Prospective home buyers should explore all the ways they can reduce their monthly payment to bring homeownership within reach.”