Mortgage Rate the Lowest in a Year

If you have been waiting for a break in mortgage rates, the news you have been hoping for finally arrived. On Friday, September 5th, the average 30-year fixed mortgage rate fell to its lowest level since October 2024. Even better, it was the biggest one-day decline in more than a year.

Why Did Rates Fall?

The drop came right after the release of the August jobs report, which was weaker than expected for the second month in a row. That report sent ripples through the financial markets and signaled a slowing economy. When that happens, mortgage rates historically ease, and that is exactly what we are seeing now.

As the market becomes more certain about the direction of the economy, rates are adjusting. For buyers, that is welcome news.

What This Means for Buyers

This is not just about a single headline. It is about the impact on your bottom line.

Back in May, mortgage rates were hovering around 7 percent. Today they are significantly lower. That difference translates to almost two hundred dollars less per month on a typical mortgage payment. Over the course of a year, that is nearly twenty four hundred dollars in savings.

If you have been holding off on buying because affordability felt out of reach, this change could open new opportunities.

How Long Will It Last?

The big question is whether this is the start of a trend or just a temporary dip. Much depends on the path of inflation and the broader economy. Rates could continue to decline or they could move back up.

That is why it is important to stay connected with a knowledgeable real estate agent and a trusted lender. They will keep track of economic indicators and Federal Reserve updates so you are ready to act when the timing is right.

For now, what matters is this. Rates finally broke free from the high six percent range where they have been stuck for months. That gives buyers more hope and more opportunity than they have had in quite some time.

The Bottom Line

Mortgage rates just experienced their biggest drop in over a year. While no one can guarantee what will happen next, this shift is a real win for buyers.

If you have been sitting on the sidelines, now may be the time to revisit your home search. The house that felt just out of reach a few months ago may now be within your budget.