Now is the time if you’ve been waiting for the perfect moment to jump into the homebuying market. Mortgage rates have recently fallen to their lowest level in over a year and a half, allowing buyers to secure better deals on home loans. This significant drop could positively impact your monthly payment, providing more affordability in your home purchase.

Mortgage Rates at Their Lowest in 18 Months

Even a slight rate change can mean a big difference in your monthly mortgage payment, but the recent drop isn’t tiny. This downward rate shift provides buyers with better financial flexibility than they’ve had in months.

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.”

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 is 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 dramatically impacts your bottom line. In just a few months, 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, your purchasing power is now better than in almost two years. Let’s talk about your options and how you can make the most of this moment you’ve been waiting for.