HUD Articles

Mortgage rates have recently reached their lowest level in over 18 months, offering significant news for those who have been patiently waiting to buy a home. Even a modest reduction in rates can lead to a more affordable monthly payment, and the current decrease is anything but modest. According to Sam Khater, Chief Economist at Freddie Mac, mortgage rates have dropped by more than half a percentage point, hitting their lowest mark since February 2023.

This decline is substantial: rates have fallen from 7.5% a few months ago to the low 6% range. For a $400,000 loan, this reduction translates to a decrease of over $370 in the expected monthly payment, equating to hundreds of dollars in savings each month.

In summary, with mortgage rates now at their lowest in nearly two years, your purchasing power has significantly improved. It’s an ideal time to consult with a local real estate agent to explore your options and take advantage of this favorable shift in the market.