Mortgage Rates Just Experienced Their Largest Decline in a Year

If you’ve been waiting for a sign that mortgage rates might finally move, the wait is over. Last week, they shifted—and in a big way.

On Friday, September 5th, the average 30-year fixed mortgage rate dropped to its lowest point since October 2024. It marked the steepest single-day decrease in more than a year.

What Caused the Drop?
Mortgage News Daily reports that the decline was tied to August’s jobs report, which came in weaker than anticipated for the second consecutive month. This sparked reactions across financial markets, ultimately pulling mortgage rates downward.

In simple terms, the slowdown in job growth is hinting that the overall economy may be cooling. As confidence builds around that trend, markets typically adjust—and history shows mortgage rates often fall in response.

Why This Matters for Buyers
This isn’t just about one headline—it’s about what it means for your wallet.

The recent dip makes homeownership more affordable. For example, take a look at the difference between mortgage payments when rates were around 7% (back in May) compared to where they are today:

A buyer could save nearly $200 per month on their mortgage payment. That adds up to almost $2,400 a year.

Will Lower Rates Stick Around?
That depends largely on the direction of the economy and inflation. Rates could ease further or rebound slightly.

That’s why it’s important to stay in touch with a knowledgeable agent and lender. They’ll track inflation data, job market reports, and upcoming Fed decisions to help you understand what’s next for mortgage rates.

For now, here’s what matters: rates have finally broken out of their months-long standstill. If you’ve been feeling stuck in your home search, this could be the opening you’ve been waiting for. As CNBC Senior Real Estate and Climate Correspondent Diana Olick explains:
“Rates are finally breaking out of the high 6% range, where they’ve been stuck for months.”

And that shift brings new optimism for buyers.

Final Thoughts

The market just delivered the change you’ve been waiting on. Mortgage rates recorded their biggest one-day drop in over a year. If this trend holds, homes that felt out of reach just a few months ago may now be back within your budget.

Curious what today’s lower rates could mean for your monthly payment? Let’s connect and run the numbers together.