If you’ve been waiting to buy a home because of high mortgage rates, now might be a good time to take another look! Rates have been coming down recently, which could be your chance to get back in the game.

Mortgage rates have been dropping for seven weeks in a row now, according to Freddie Mac. In fact, the average weekly rate is the lowest it’s been all year! (Check out the graph below.)

It might not seem like a huge change, but it’s definitely worth noting. Dropping from over 7% to the mid-6’s is a big deal—it can totally shift your mindset about buying a home. Especially since experts weren’t expecting us to reach this point until around Q3 of this year! (Check out the graph below.)

Why Are Mortgage Rates Falling?

Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), says that recent economic uncertainty is helping to bring rates down.

"Mortgage rates declined last week on souring consumer sentiment regarding the economy and increasing uncertainty over the impact of new tariffs levied on imported goods into the U.S. Those factors resulted in the largest weekly decline in the 30-year fixed rate since November 2024."

The timing of this drop couldn’t be better—it gives you a bit of a break just as we head into the spring market. Just keep in mind that mortgage rates can be unpredictable, so some ups and downs are likely. But with rates trending down right now, this could be the sweet spot to maximize your buying power!

How You Can Take Advantage of Lower Mortgage Rates

Even a small drop in rates can have a big impact on your monthly payment. Check out the numbers—this chart breaks down how your payment (principal and interest) would look on a $400K loan if you bought a home when rates hit 7.04% back in mid-January (the highest this year) compared to what it could be if you bought now.

In just a few weeks, the expected payment on a $400K loan has dropped by over $100 a month—that’s a pretty big deal! When it comes to a major decision like buying a home, every dollar saved matters.

Keep in mind, economic shifts brought rates down faster than expected—but that could change, making them unpredictable in the coming weeks and months. So if you’re holding out for even lower rates, it’s worth thinking about the opportunity in front of you right now if you’re ready to make a move.

Bottom Line

Mortgage rates have come down, giving buyers a little more breathing room. If you’ve been holding off for a better rate, now might be your chance to jump in!

Would a lower monthly payment make buying a home feel more within reach? Let’s crunch the numbers and see!