U.S. Mortgage Closing Costs Fell 2.9% in 2025

Mortgage closing costs — covering transfer taxes, recording and document charges, settlement or escrow services and title insurance — are an upfront hurdle beyond a down payment and interest. Their weight varies sharply by jurisdiction because some charges move with property values while others reflect state and local policy. That mix makes closing costs an important, if often overlooked, factor in whether borrowers can afford to buy a home or refinance an existing loan.

LodeStar Software Solutions said in a June 30, 2026, year-over-year report that average purchase-mortgage closing costs fell 2.9% in 2025, to $4,528 from $4,661. Costs declined in 27 states and Washington, D.C., and rose in 23 states. The average home sale price slipped 1.1% to $433,632 from $438,236, indicating that price-linked charges, rather than tax or fee cuts, drove the decrease. Washington, D.C., posted the steepest decline at 21.1%, while Delaware recorded the largest increase at 4.5%.