Mortgage rates have recently dropped to their lowest point in over a year and a half, which is great news if you’ve been waiting on the sidelines to buy a home.
Even a slight decrease in rates can significantly lower your monthly payment, and the recent drop has been more than just slight. As Sam Khater, Chief Economist at Freddie Mac, explains:
“Mortgage rates have fallen more than half a percent . . . and are at their lowest level since February 2023.”
To put this into perspective, let’s break down the numbers. The chart below compares the monthly payment (principal and interest) on a $400K home loan if you had purchased in April—when rates were at their peak—versus what your payment would look like if you bought today.
The difference is substantial. With rates dropping from 7.5% a few months ago to the low 6s, the monthly payment on a $400K loan has decreased by over $370. That’s a significant saving, adding up to hundreds of dollars per month.
With mortgage rates at their lowest in almost two years, your buying power is stronger than it’s been in a long time. Contact a member of our team today to discuss your options and take advantage of this opportunity.