Mortgage Rates Just Hit a 15-Month Low--Don't Miss Your Chance to Save!

Good news for home shoppers: mortgage rates have finally dropped to their lowest level in 15 months!

The average rate on a 30-year fixed mortgage is now 6.46%, down slightly from 6.49% last week, and a noticeable dip from last year’s 7.23%. If you've been waiting for a break in the housing market, this might be your moment.

For the past year, mortgage rates have felt like an ever-present hurdle for those looking to buy or refinance. After hitting a peak of 7.79% in October, rates hovering around 7% this year have kept many potential buyers on the sidelines, making homeownership feel out of reach for many. But with this recent shift, there’s hope on the horizon.

Even though the dip in rates might seem small, it’s a significant change. Lower rates mean lower monthly payments, which can make a big difference in your budget.

And it’s not just 30-year mortgages that are seeing this benefit.

Rates on 15-year fixed-rate mortgages have also dropped, now sitting at 5.62%, down from 5.66% last week. This is especially good news for homeowners considering refinancing. Lower rates could mean substantial savings over the life of your loan.

But what’s causing these rates to drop? A mix of economic factors, including slowing inflation and a cooling job market, is leading experts to believe that the Federal Reserve may soon cut its benchmark interest rate. This would be the first rate cut in four years, and it’s fueling optimism that mortgage rates might continue to trend downward throughout the year.

However, it’s worth noting that while these lower rates are a positive development, the housing market still faces challenges. High home prices and a shortage of properties for sale continue to limit opportunities, especially for first-time buyers and those with moderate incomes. 

So, what should you do if you’re considering buying or refinancing? Now could be an excellent time to explore your options with your mortgage professional.

Rates might not be dropping by huge amounts, but any decrease is a step in the right direction. If you’ve been sitting on the fence, waiting for a better time to make your move, this could be it. As always, consult with a local mortgage professional to see how these changes might benefit you personally.