Mortgage rates are at their lowest level in more than a year and a half. This is significant if you've been holding off on buying a home, waiting for the right time.

A slight decrease in interest rates could lead to a more favorable monthly payment than you might anticipate for your next home. The recent decline has been significant. According to Sam Khater, Chief Economist at Freddie Mac:

““Mortgage rates have fallen more than half a percent . . . and are at their lowest level since February 2023.”
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— Sam Khater, Chief Economist at Freddie Mac

If you want to truly understand it, let’s break down the numbers. Take a moment to examine how this affects your monthly payment.

The chart below compares the monthly payment for a $400K home loan if you had bought a house back in April, when mortgage rates were at their highest this year, versus what that payment might look like if you decided to buy a home now.

The drop from 7.5% to the low 6s in just a few months really changes your financial situation. For example, if you’re looking at a $400K loan, your expected monthly payment has decreased by more than $370. That's saving you hundreds of dollars each month.

Bottom Line

With mortgage rates down recently, your purchasing power is now at one of its highest points in nearly two years. Let's discuss your options and how you can take advantage of this opportunity you've been anticipating.