If you’ve been waiting for mortgage rates to move, last week finally delivered some good news. On Friday, September 5th, the average 30-year fixed mortgage rate fell to its lowest point since October 2024, marking the largest one-day drop in over a year.
What Caused the Drop?
According to Mortgage News Daily, this reaction came after the August jobs report showed weaker-than-expected results for the second month in a row. That signaled to the markets that the economy may be slowing, which historically pushes mortgage rates down.
Why This Matters for Buyers
This isn’t just a headline, it has real implications for your wallet. A look at the numbers shows the difference: if mortgage rates were at 7% back in May, your monthly payment on the same home would be almost $200 higher than it would be at today’s lower rates. That’s nearly $2,400 in potential annual savings.
How Long Will It Last?
No one can predict with certainty. Rates could drop further, or they could tick back up depending on inflation, the job market, and Fed policy. The key is staying connected with a knowledgeable agent and trusted lender who monitor these trends and can guide you on timing.
As Diana Olick, CNBC Senior Real Estate and Climate Correspondent, notes:
“Rates are finally breaking out of the high 6% range, where they’ve been stuck for months.”
Bottom Line
Mortgage rates just saw their biggest drop in over a year, and if they hold near this level, homes that felt out of reach a few months ago might now be within your budget.
Curious what this could mean for your monthly payment? Let’s connect and run the numbers for you.
