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If you’re looking to buy a home in 2026, there’s one common mistake that many buyers make, and it could potentially lead to thousands in lost savings.
According to a report from Zillow, nearly seven in 10 Americans submit only one application when securing a mortgage (1), and this could have a significant financial impact on purchasing a home.
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Mortgage rates have remained high since the pandemic. In 2022, the average 30-year fixed-rate mortgage in the U.S. climbed above 6%, and it hasn’t fallen below that mark since (2). And while Fannie Mae has projected the average 30-year fixed mortgage rate will drop to 5.9% by the end of 2026 (3), rates are likely to remain high compared to pre-pandemic levels.
However, high mortgage rates — the average rate for a 30-year fixed-rate mortgage sat at 6.18% as of December 2025 — haven’t been the only issue that homebuyers are facing. Home prices have also increased dramatically since the pandemic, with the average price of a home at the beginning of 2020 sitting at $246,326. As of November 2025, the average home price was $359,241, according to Zillow (4).
While Zillow reports that home affordability has eased in recent months — largely due to a dip in mortgage rates compared to 2024, as well as improved inventory (5) — many Americans are still facing a cost-of-living crunch overall.
That’s why shopping around for the best mortgage rate could be a big help when it comes to saving money on a home purchase.
A 2023 Freddie Mac study found that the variability in rates offered to buyers has increased since 2010 (6). In 2022, when rates climbed above 7%, mortgage rate dispersion — the variability between rates offered by lenders — climbed as rates increased, with the average dispersion hitting 0.5% in October and November of that year.
“The increase in rate dispersion means that consumers with similar borrower profiles are being offered a wide range of mortgage rates,” said Genaro Villa, macro and housing economics professional at Freddie Mac.
“In the context of today’s rate environment, although mortgage rates are averaging around 6%, many consumers that fit the same borrower profile could have received a better deal on one day and locked in a 5.5% rate, and on another day locked in a rate closer to 6.5%.”
The savings that potential homebuyers could reap from shopping around for mortgage rates could potentially make homes more affordable for a large number of Americans.
Zillow estimated that, based on a home worth about $360,000, at a 6.24% mortgage rate with a 20% down payment, monthly payments would be about $2,345 (this includes estimates for principal, insurance, taxes, interest and maintenance costs).
However, if this hypothetical homebuyer shopped around for a better rate and was able to secure one at 5.74%, their monthly payment would drop to $2,253 — about $1,100 less per year (1). Over the life of a 30-year loan, this could add up to tens of thousands in savings.
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In a report from CNBC (7), certified financial planner Mike Casey strongly advocated for mortgage shopping, stating that “shopping around for a mortgage is one of the most overlooked opportunities for consumers to improve their financial outcome. Many borrowers default to the lender recommended by a real estate agent or their existing bank without comparing alternatives.”
However, interest rates are not the only thing for which potential homebuyers should be on the lookout.
According to Zillow, homebuyers should also take closing costs into consideration, and note that some lower mortgage rates may have different down payment requirements (1). CNBC advises homebuyers to ask their potential lender about what its rates and closing costs would mean under different scenarios, such as how much of the principal the borrower would have paid off in five years.
Freddie Mac notes that, when it comes to your credit score and making multiple loan applications (5), “there is some credit score risk when applying for several mortgages in a short span, but ultimately a borrower must decide if those risks outweigh the savings from lower payments.”
However, Margaret Poe, head of consumer credit education for TransUnion, told CNBC that multiple applications may not show on your credit report as separate inquiries if your applications are close together. Poe says that while the typical window is 45 days, some credit scoring models allow only 14 days.
If you decide to go shopping for the best mortgage rate that you can find, Freddie Mac advises that you should (8):
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Get quotes from multiple lenders — three to five if possible
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Consider different types of lenders: banks, credit unions, mortgage brokers and non-bank lenders
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Compare loans on the same day, because rates change frequently
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Shop within a 45-day period to protect your credit score
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Compare all loan terms: interest rate, APR, application fees, processing or loan origination fees and closing costs
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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Zillow (1, 4, 5); Federal Reserve Bank of St. Louis (2); Fannie Mae (3); Freddie Mac (6, 8); CNBC (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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