Hope Leitner, Realtor®, CRS

  Mortgage rates   have hit their lowest point in over a year and a half. And that’s big news if you’ve been sitting on the homebuying sidelines waiting for this moment. Even a small decline in rates could help you get a better monthly payment than you would expect on your next home. And the drop that’s happened recently isn’t small. As Sam Khater, Chief Economist at  Freddie Mac ,  says : “Mortgage rates have fallen more than half a percent . . . and are at their lowest level since February 2023.” But if you want to see it to really believe it, here’s how the math shakes out. Take a closer look at the impact on your monthly payment. The chart below shows what a  monthly payment  (principal and interest) would look like on a $400K home loan if you purchased a house back in April (this year’s mortgage rate high), versus what it could look like if you buy a home now ( see below ): Going from  7.5%  just a few months ago to the low 6s has a big impact on your bottom line. In just a few mo

  Now that it’s September, all eyes are on the  Federal Reserve  (the Fed). The overwhelming expectation is that they’ll cut the Federal Funds Rate at their upcoming meeting, driven primarily by recent signs that  inflation is cooling , and the job market is  slowing down . Mark Zandi, Chief Economist at  Moody’s Analytics ,  said : “They’re ready to cut, just as long as we don’t get an inflation surprise between now and September, which we won’t.” But what does this mean for the housing market, and more importantly, for you as a potential homebuyer or  seller ? Why a Federal Funds Rate Cut Matters The Federal Funds Rate is one of the key factors that influences  mortgage rates  – things like the economy, geopolitical uncertainty, and more also have an impact. When the Fed cuts the Federal Funds Rate, it signals what’s happening in the broader economy, and mortgage rates tend to respond. While a single rate cut might not lead to a dramatic drop in mortgage rates, it could contribute to