Mortgage Rates Are Dropping—Is Now the Right Time to Buy?

If high mortgage rates have been holding you back from buying a home, it might be time to reconsider. Rates have been steadily declining for the past seven weeks, recently hitting their lowest point of the year—sooner than experts predicted. This shift could mean better affordability and more buying power for you.

Why Are Mortgage Rates Falling?

Economic uncertainty, including concerns over new tariffs, has contributed to the decline. According to the Mortgage Bankers Association, this drop marks the largest weekly decrease in rates since November 2024. While rates can be unpredictable, this recent trend is giving buyers a much-needed break.

How This Impacts Your Buying Power

Even a small drop in mortgage rates can lower your monthly payment. For example, a $400,000 loan today costs over $100 less per month than it did when rates peaked in January. That kind of savings can make a big difference when budgeting for your new home.

Lower rates also mean you may be able to afford more home for your money. If you’ve been eyeing a home that was slightly out of budget a few months ago, it might now be within reach. The key is to act while rates are still favorable, as the market can change quickly.

Additionally, lower rates could create more competition among buyers, leading to multiple-offer situations in desirable neighborhoods. If you’re serious about purchasing, getting pre-approved and working with a knowledgeable agent can give you a competitive edge.

Should You Buy Now?

Waiting for even lower rates could be risky, as the market remains unpredictable. If you’ve been considering buying, now could be the ideal time to lock in a lower rate before they shift again.

Reach out to our team today to learn more about the current interest rate environment and to be connected with a lender to get you pre-approved so that you can begin your home search!

To learn more about interest rate trends and what they mean for the housing market take a look at this article from Keeping Current Matters.