Mortgage rates 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.
Even a slight rate decline 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 tiny. As Sam Khater, Chief Economist at Freddie Mac, says:
“Mortgage rates have fallen more than half a percent . . . and are at their lowest level since February 2023.”
But if you want to see it and believe it, here’s how the math shakes out. Take a closer look at the impact on your monthly payment.
The chart below shows what a monthly payment (principal and interest) would look like on a $400K home loan if you purchased a house back in April (this year’s mortgage rate is high) versus what it could look like if you buy a home now (see below):
Going from 7.5% just a few months ago to the low 6s dramatically impacts your bottom line. In just a few months, the anticipated monthly payment on a $400K loan has come down by over $370. That’s hundreds of dollars less per month.
Bottom Line
With the recent drop in mortgage rates, your purchasing power right now is better than it’s been in almost two years. Talk to us at The Aaronson Group about your options and how to make the most of this moment you’ve been waiting for. Connect with us. Call: 949-388-5194 or email info@previewochomes.com
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