It probably feels like you’ve been waiting forever for mortgage rates to move — and last week, they finally did, in a big way.

 

On Friday, September 5th, the average 30-year fixed mortgage rate dropped to its lowest point since October 2024 — marking the biggest one-day drop in more than a year.

 

Mortgage News Daily says the drop was a reaction to the August jobs report, which came in weaker than expected for the second month straight. That shook up the financial markets — and in turn, mortgage rates came down.

 

Basically, we’re starting to see signs the economy might be slowing. As the picture becomes clearer about where things are headed, the markets are responding — and that usually means mortgage rates come down.

 

This isn’t just about a single headline or one report — it’s really about what this drop could mean for you.

 

This recent shift could put more money back in your pocket when buying a home. The chart below shows a quick example of what a monthly mortgage payment (principal and interest) looked like at 7% back in May compared to where rates are sitting now:

 

 

Just four months ago, your monthly payment would’ve been almost $200 higher. That adds up to nearly $2,400 in savings over a year.

 

It really comes down to where the economy and inflation head next. Rates might dip even lower, or they could creep back up a bit.

 

That’s why it’s important to stay connected with a great agent and a trusted lender. They’ll track things like inflation, job reports, and upcoming Fed decisions to help you get a sense of where mortgage rates might head next.

 

For now, here’s the takeaway: no one can predict exactly where rates are going, but the fact that they’ve finally broken out of that months-long standstill is a positive sign. If you’ve been feeling stuck, this shift could mark the beginning of a new chapter. As Diana Olick, Senior Real Estate and Climate Correspondent at CNBC, puts it:

 

“Rates are finally breaking out of the high 6% range, where they’ve been stuck for months.” 

And that’s more reason for optimism than we’ve seen in a while.

 

This is the change you’ve been hoping to see.

 

Mortgage rates just had their biggest drop in over a year. If they hold around this level, a home that felt out of reach a few months ago might now be within your budget.

 

Curious how much today’s rates could shave off your future monthly payment? Let’s connect and crunch the numbers together.