Mortgage rates have hit their lowest point in over a year and a half. And that’s big news if you’ve been sitting on the homebuying sidelines waiting for this moment.
Even a small decline in rates could help you get a better monthly payment than you would expect on your next home. And the drop that’s happened recently isn’t small. As Sam Khater, Chief Economist at Freddie Mac, says:
“Mortgage rates have fallen more than half a percent . . . and are at their lowest level since February 2023.”
But if you want to see it to really believe it, here’s how the math shakes out. Take a closer look at the impact on your monthly payment.
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 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 has a big impact on your bottom line. In just a few months’ time, 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, the purchasing power you have right now is better than it’s been 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.
To view original article, visit Keeping Current Matters.
What’s Motivating Homeowners To Move Right Now
Selling your home isn’t just about market conditions or mortgage rates—it’s also about making the best decision for your lifestyle and future.
The Majority of Veterans Are Unaware of a Key VA Loan Benefit
VA home loans are designed to make homeownership a reality for those who have served our country.
Renting vs. Buying: The Net Worth Gap You Need To See
If you’re on the fence, it may be helpful to speak with a local real estate agent. They can help you weigh your options.
Expect the Unexpected: Anticipating Volatility in Today’s Housing Market
Understanding what’s happening will help you make the right decisions, whether that’s buying or selling.
Is a Fixer Upper Right for You?
The perfect home is the one you perfect after buying it. With careful planning, budgeting, and a little bit of vision, you can turn a house that needs some love into your perfect home.
How Real Estate Agents Take the Fear Out of Moving
Real estate agents are trusted guides to help you navigate the complexities of the housing market with confidence and ease.