Mortgage Rates Drop to around 6.2%!
Freddie Mac reports that 30-year fixed-rate mortgages have decreased to 6.2%, down from 7.18% a year ago.
While the recent 0.50% Fed rate cut is now mostly reflected in these lower rates, the difference from last year’s rates can significantly boost a homebuyer’s purchasing power. 
For example, consider a $900,000 home purchase with a 20% down payment:
Loan Amount: $720,000 (80% of $900,000)
At 7.18% interest (last year): The monthly mortgage payment would have been approximately $4,879.
At 6.2% interest (today): The monthly mortgage payment drops to around $4,423.
This results in a savings of $456 per month, or $5,472 per year.
More Home for the Same Payment:
A homebuyer who could afford a $900,000 home last year at 7.18% can now afford a home priced around $972,000 at today’s 6.2% rate, for the same monthly payment.
That’s $72,000 more home with the same budget!
For Sellers: Lower rates could bring more buyers into the market, driving up demand for homes, which could result in quicker sales and potentially higher prices.
Homebuyers and sellers should speak with a trusted mortgage specialist to discuss how these new rates affect their financing options.
Contact Jean and Ken Tritle, a husband and wife real estate broker/agent team at DreamWell Homes Realty.
Call or Text: 760-798-9024
Email: jeanken@dreamwellhomes.com
