You’ve been waiting for what feels like forever for mortgage rates to finally budge. And this month, 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 a second month in a row. That sent signals across the financial markets, and then mortgage rates came down as a result.
Basically, we’re seeing signs the economy may be slowing down, and as certainty grows in the direction the economy is going, the markets are reacting to what is likely ahead. That historically brings mortgage rates down.
Why Buyers Should Pay Attention Now
But this isn’t just about one day of headlines or one report. It’s about what the drop means for you.
This recent change saves you money when you buy a home.
Compared to just 4 months ago, your future monthly payment would be almost $200 less per month. That’s close to $2,400 a year in savings.
How Long Will It Last?
That really depends on where the economy and inflation go from here. Rates could drop lower, or they could inch up slightly.
So, make sure you’re working with a trusted lender and a good agent. At Resource Financial Services, our mortgage bankers keep a close eye on key indicators like inflation, job market trends, and the Fed’s next moves to help guide you with confidence. They’ll be watching these shifts carefully to gauge where rates may go and how that impacts your options.
But for now, focus on this. While no one can say for sure where rates are headed, the fact that rates broke out of their months-long rut is a good thing. If you’ve been feeling stuck, this could make the start of a new chapter. 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’s more reason for hope than buyers have had in quite some time. And if you have questions about how this shift could impact your own plans, let’s connect. That way, you’ll have someone to help you navigate the market and make the most of the opportunities ahead. At Resource Financial Services, our mortgage bankers are experienced and resourceful, offering financial options that can ease your stress and help you find financial peace.
This is the shift you’ve been waiting for.
Mortgage rates just saw their biggest drop in over a year. If they hold near this level, a home that felt out of reach just months ago may now be within your budget. Get started online at rfsmortgage.com, or call us today at 803.748.4545 to speak with one of our mortgage bankers about your home loan options.
