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While current mortgage rates are in the vicinity of 7%, roughly half (45%) of recent homebuyers secured a mortgage with a rate below 5%, according to data from Zillow (NASDAQ: Z, ZG).

More than one-third (35%) of these recent buyers were able to get a lower rate because either the seller or the home builder provided them with special financing. About one-quarter either made their offer contingent on a rate buydown (26%), refinanced to a lower rate after buying (25%), or borrowed from a friend or family member (23%).

Mortgage rates were at a historic low of 2.65% in 2021 before soaring to decade-long highs of 7.79% in the fall of 2023. Zillow estimated the typical mortgage payment spiked by 115% from the pre-pandemic era to a recent peak in May.

“This surprising finding really underscores the creativity of both buyers and sellers navigating today’s dynamic real estate market,” said Amanda Pendleton, Zillow’s home trends expert. “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.”