Mortgage Rates Drop to Lowest Level in over a Year and a Half

<article class="post-1197812 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-1197812"><span class="entry-date">September 17, 2024</span><div class="entry-header center-block text-center"><h1 class="entry-title">Mortgage Rates Drop to Lowest Level in over a Year and a Half</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Mortgage+Rates+Drop+to+Lowest+Level+in+over+a+Year+and+a+Half&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fmortgage-rates-drop-to-lowest-level-in-over-a-year-and-a-half%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="Mortgage Rates Drop to Lowest Level in over a Year and a Half Simplifying The Market" decoding="async" loading="lazy" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240916/20240917-mortgage-rates-drop-to-lowest-level-in-over-a-year-and-a-half-original.png" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width=""/>
<p><a href="https://www.simplifyingthemarket.com/2024/08/19/how-mortgage-rate-changes-impact-your-homebuying-power/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">Mortgage rates</a> 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.</p>
<p>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 <em>Freddie Mac</em>, <a href="https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-drop-their-lowest-level-february-2023" rel="noopener noreferrer" target="_blank">says</a>:</p>
<blockquote><p><em>“Mortgage rates have fallen more than half a percent . . . and are at their lowest level since February 2023.”</em></p></blockquote>
<p>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.</p>
<p>The chart below shows what a <a href="https://www.mortgagecalculator.net/" rel="noopener noreferrer" target="_blank">monthly payment</a> (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 (<em>see below</em>):</p>
<p><a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240916/20240917-how-the-recent-drop-in-mortgage-rates-helps-you-original.png" rel="noopener noreferrer" target="_blank"><img alt="No Caption Received" decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240916/20240917-how-the-recent-drop-in-mortgage-rates-helps-you-original.png"/></a>Going from <a href="https://www.mortgagenewsdaily.com/mortgage-rates/30-year-fixed" rel="noopener noreferrer" target="_blank">7.5%</a> 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.</p>
<h3>Bottom Line</h3>
<p>With the recent drop in mortgage rates, the purchasing power you have right now is better than it’s been in almost two years. Talk to a local <a href="https://www.simplifyingthemarket.com/2024/08/20/how-to-choose-a-great-local-real-estate-agent/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">real estate agent</a> about your options and how you can make the most of this moment you’ve been waiting for.</p>
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