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 hit their lowest point in over a year and a half. And that’s big news if you’ve been sitting on the homebuying sidelines waiting for this moment.

Even a small decline in rates could help you get a better monthly payment than you would expect on your next home. And the drop that’s happened recently isn’t small. As Sam Khater, Chief Economist at Freddie Mac, says:

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

But if you want to see it to really believe it, here’s how the math shakes out. Take a closer look at the impact on your monthly payment.

The chart below shows what a monthly payment (principal and interest) would look like on a $400K home loan if you purchased a house back in April (this year’s mortgage rate high), versus what it could look like if you buy a home now (see below):

Going from 7.5% just a few months ago to the low 6s has a big impact on your bottom line. In just a few months’ time, the anticipated monthly payment on a $400K loan has come down by over $370. That’s hundreds of dollars less per month.

Bottom Line

With the recent drop in mortgage rates, the purchasing power you have right now is better than it’s been in almost two years. Lets about your options and how you can make the most of this moment you’ve been waiting for.

For Sellers: A Great Time to Sell & Buy

It’s not just a great time for buyers — sellers also stand to benefit in today’s market. With mortgage rates dropping, more buyers are re-entering the market, increasing demand for homes. This uptick in competition can help you sell your property for top dollar.

On the flip side, if you’re considering buying after selling, you can take advantage of the current lower rates to secure an affordable mortgage on your next home. By selling high and buying with a favorable rate, you’re in a prime position to make a smart financial move on both ends.

If you’re thinking about selling, now is the perfect time to capitalize on the market conditions and get the most for your home. Reach out today to discuss how you can take advantage of this opportunity!