Mortgage rates have recently reached their lowest level in more than 18 months, which is exciting news for prospective homebuyers who’ve been waiting for the right moment.
Even a slight dip in rates can significantly improve your monthly mortgage payment. However, the recent decline in rates isn’t minor. As Sam Khater, Chief Economist at Freddie Mac, explains:
“Mortgage rates have fallen more than half a percent . . . reaching their lowest point since February 2023.”
If you're wondering how much of a difference this makes, let’s break it down. The following chart shows the potential monthly payment (principal and interest) on a $400K home loan, comparing rates from April—when mortgage rates peaked this year—to current rates.
In just a few months, mortgage rates have fallen from 7.5% to the low 6s, making a significant difference in your monthly payments. For example, the estimated payment on a $400K loan has dropped by over $370, saving you hundreds of dollars each month.
Bottom Line:
The recent dip in mortgage rates means your purchasing power is stronger than it's been in nearly two years. Let’s discuss your options and how you can take advantage of this opportunity to achieve your homeownership goals.
