Mortgage Rates Just Saw Their Biggest Drop in a Year

You’ve been waiting for what feels like forever for mortgage rates to finally budge. And last week, they did, in a big way.

On Friday, September 5th, the average 30-year fixed mortgage rate fell to the lowest level since October 2024. It was the biggest one-day decline in over a year.

What Sparked the Drop?

According to Mortgage News Daily, this was a reaction to the August jobs report, which came out weaker than expected for the second month in a row. That sent signals across the financial markets, and mortgage rates dropped as a result.

Basically, we’re seeing signs that the economy may be slowing down. As certainty grows around where things are headed, the markets tend to adjust, and that often means lower mortgage rates.

Why Buyers Should Pay Attention Now

This isn’t just about one headline or one report; it’s about what the drop means for you.

This change could save you money when you buy a home. For example, compared to just four months ago when rates were around 7%, today’s rates could mean nearly $200 less per month on your mortgage payment. That’s almost $2,400 a year in savings.

How Long Will It Last?

That depends on where the economy and inflation go next. Rates could drop lower, or they might inch up again.

That’s why it’s essential to work with a knowledgeable agent and a trusted lender. They’ll track inflation reports, job market data, and upcoming Federal Reserve decisions to help you stay ahead of the curve.

But for now, focus on this: rates are no longer stuck in the high 6% range. As Diana Olick, Senior Real Estate and Climate Correspondent at CNBC, says:

“Rates are finally breaking out of the high 6% range, where they’ve been stuck for months.”

That gives buyers more reason to feel hopeful than they’ve had in quite some time.

Bottom Line

Mortgage rates just saw their biggest drop in over a year. If they stay near this level, a home that felt out of reach a few months ago may now be within your budget.

Curious how today’s rates could impact your monthly payment?

Let’s connect and run the numbers together.  I’m just a call away. Bret Johnson at 602-502-6468 or by email at bret@renetgroup.com, for insights into our local market and a personalized game plan for your next real estate move.

Reference:
This summary is based on insights from Bret Johnson, Associate Broker at Realty Network Group at Real Broker and Keeping Current Matters. For the full article, visit Real Estate with Bret Johnson.