Mortgage Rates See Their Biggest Drop in Over a Year

If you’ve been waiting for mortgage rates to move, now’s the moment you’ve been hoping for. On Friday, September 5th, the average 30-year fixed mortgage rate fell to its lowest level since October 2024, marking the largest one-day decline in over a year.

This shift could mean big savings if you’re planning to buy a home in the near future.

What Caused the Drop in Mortgage Rates?

According to Mortgage News Daily, the drop was sparked by a weaker-than-expected August jobs report—the second disappointing month in a row. That report signaled a potential slowdown in the economy, which historically pushes mortgage rates lower as financial markets adjust.

In short: as the economy shows signs of cooling, rates are responding and homebuyers stand to benefit.

Why This Matters for Homebuyers

This isn’t just another headline. Lower mortgage rates directly impact your monthly payment, making homeownership more affordable. Take a look at the difference between where rates were in May (around 7%) and where they are now:

On a typical loan amount, the savings could add up to $200 less per month, that’s nearly $2,400 a year back in your pocket.

How Long Will Mortgage Rates Stay Low?

That’s the big question. Rates could continue to drop or they could inch back up depending on economic data, inflation, and upcoming Federal Reserve decisions. The key is to stay connected with a trusted real estate agent and experienced lender who track these shifts daily. Together, they can help you act quickly when opportunities like this appear.

As CNBC’s Diana Olick put it:

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

This could be the start of a more favorable season for buyers.

The Bottom Line

Mortgage rates just saw their biggest decline in over a year, opening the door to opportunities that may have felt out of reach a few months ago. If you’re wondering what today’s rates could save you on your future monthly payment, now’s the time to take the next step.

I’d love to walk you through your options and connect you with lenders who can run the numbers for your specific situation. Let’s talk about making your homeownership goals a reality today.