Mortgage Rates Drop to Lowest Level in over a Year and a Half

Mortgage Rates Drop to Lowest Level in over a Year and a Half

Mortgage rates have recently dropped to their lowest point in over 19 months, which is great news if you've been holding off on buying a home. Even a slight decrease in rates can lead to a lower monthly payment, and this latest dip is more than just minor. As Sam Khater, Chief Economist at Freddie Mac, explains:

“Mortgage rates have fallen more than half a percent . . . and are at their lowest level since February 2023.”

If you're looking for proof, the numbers speak for themselves. Here's a breakdown of how much your monthly payment (covering principal and interest) would be on a $400,000 home loan if you bought a house during the peak mortgage rates in April, compared to what it could look like with today's lower rates. Take a look at the chart below to see the difference:

The drop from a 7.5% mortgage rate just a few months ago to rates in the low 6s makes a significant difference in your finances. On a $400,000 loan, your anticipated monthly payment has decreased by more than $370. That’s hundreds of dollars saved each month, making homeownership more affordable than it was earlier this year.

Bottom Line

With the recent drop in mortgage rates, your purchasing power is stronger than it has been in nearly two years. Let’s connect to discuss your options and how you can take advantage of this opportunity.