If you’ve been waiting for mortgage rates to finally ease up, there’s good news. Last week, they dropped — and not just a little.
On Friday, September 5th, the average 30-year fixed mortgage rate hit its lowest point since October 2024. It was the largest single-day decline in more than a year.
Why Did Rates Fall?
According to Mortgage News Daily, the drop was tied to the August jobs report, which came in weaker than expected for the second month in a row. That slowdown signaled to the markets that the economy may be cooling, and mortgage rates followed.
When economic uncertainty builds, rates often move down — and that’s what we’re seeing play out now.
Why It Matters for Buyers
This isn’t just about one day’s numbers. The change has a real impact on affordability.
The chart below compares a sample monthly mortgage payment (principal and interest) at 7% — the rate back in May — with today’s average:
That difference adds up to almost $200 less each month, or nearly $2,400 per year in savings.
What’s Next?
The future path of rates depends largely on economic data like inflation reports, job numbers, and upcoming Fed policy. Rates could dip further, or they may edge back up.
That’s why working with a knowledgeable agent and a trusted lender matters. They’ll track these shifts and guide you on timing your move.
But what’s important today is this: after months of rates being stuck, we’re finally seeing movement in buyers’ favor.
That shift is giving buyers more reason to feel optimistic.
Bottom Line
Mortgage rates just recorded their biggest decline in over a year. If they stay near this level, the home that once felt out of reach may now be within your budget.
Curious how much today’s rates could save you each month? Let’s connect and run the numbers.
Vesta Schneider
Realtor®
Luxury Homes | Relocation | Investments
Keller Williams Realty McKinney
📞 302-530-7314
📧 vestaschneider@yahoo.com
