If you've been waiting for a break in mortgage rates, that moment may have just arrived. On Friday, September 5th, the average 30-year fixed mortgage rate dropped to its lowest level since October 2024 and even more striking, it marked the largest single-day decrease in over a year.
What Sparked the Decline?
The sharp drop was largely triggered by a weaker-than-expected August jobs report for the second month in a row with disappointing employment data. That sent a clear message to financial markets: the economy may be cooling off.
When signs point to slower economic growth and reduced uncertainty, mortgage rates often begin to ease. That’s exactly what we’re seeing now.
Why This Matters for Homebuyers
This isn’t just a headline, it’s a real opportunity. Lower mortgage rates can significantly reduce your monthly housing costs. For instance, on a $400,000 mortgage, a rate drop from 7% to 6.29% could mean saving nearly $200 every month. Over a year, that's thousands of dollars and for many, the difference between affordability and being priced out of the market.
Will Rates Keep Falling?
That’s the million-dollar question. Where mortgage rates go from here will depend on upcoming inflation data, the job market, and decisions from the Federal Reserve. Rates could continue to decline or they might edge back up.
That’s why it’s crucial to stay informed and connected with a trusted real estate professional and mortgage lender. As CNBC’s Diana Olick recently noted, “Rates are finally breaking out of the high 6% range, where they’ve been stuck for months.”
This shift could open doors that felt closed just a few months ago.
Thinking About Buying?
Today’s lower rates could have a major impact on your buying power and monthly payment. Reach out now, and we’ll help you explore your options. Let’s talk!
