Facts: The average 30-year fixed mortgage rate from Freddie Mac decreased to 6.50%, down from 6.56% last week. At this rate, with a 20% down payment, the monthly mortgage payment is $2,023 for a home priced at $400,000. With a 10% down payment, the typical payment would be $2,275.
Positive: Mortgage rates have dropped to the lowest level since October 2024. This widens the pool of buyers who can afford to purchase a home and may bring some sellers to the market. Additionally, some homeowners should consider monthly savings with refinancing.
Level-set: Rates are still entrenched in the mid-6% range. While this seems too high for some to divorce from their sub-4% mortgage, life changes and new jobs do happen, and not all are wedded to a mortgage rate.
