Mortgage Rates Hit Lowest Point So Far This Year

If you’ve been holding off on buying a home due to high mortgage rates, it’s time to take another look at the market. Mortgage rates have been trending down, offering a new chance to jump back into the game. In fact, mortgage rates have been declining for seven straight weeks, and the average rate is now at its lowest point so far this year.

While it may seem like a small shift, this drop from over 7% to the mid-6’s is noteworthy. Forecasts had predicted that we wouldn’t see these numbers until the third quarter of the year, making this an unexpected but welcome change. This drop could make a significant difference in your mindset when it comes to buying a home.

Why Are Rates Coming Down?

Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), points to economic uncertainty as a key factor in driving rates lower:

“Mortgage rates declined last week due to souring consumer sentiment regarding the economy and increasing uncertainty over the impact of new tariffs levied on imported goods into the U.S. These factors resulted in the largest weekly decline in the 30-year fixed rate since November 2024.”

This recent dip in rates is coming at the perfect time as we approach the spring market, offering some relief for potential homebuyers. However, keep in mind that mortgage rates can fluctuate quickly, so there may still be some volatility ahead. But right now, this could be your sweet spot to make the most of your purchasing power.

What Lower Rates Mean for Your Buying Power

Even small changes in mortgage rates can make a big difference in your monthly payment. For example, let’s look at a $400,000 home loan. If you purchased a home when rates were 7.04% in mid-January, your monthly payment (principal and interest) would have been higher than it would be now with the current rates in the mid-6’s.

In just a few weeks, your payment could drop by over $100 per month. While that might not seem like much, every little bit counts when you’re making such a significant financial decision. This could be the difference between stretching your budget or finding a home that feels more comfortable.

Bottom Line

Mortgage rates have dipped, offering buyers more breathing room. If you’ve been waiting for rates to ease, this could be your window of opportunity. With rates now lower, a lower monthly payment might make buying a home feel more doable.

Would a lower monthly payment make buying a home feel more attainable for you?

Connect with an agent to break down the numbers and explore your options. Whether you’re ready to act now or still considering your next move, we’re here to help you navigate these changing market conditions.