You've probably been waiting forever for mortgage rates to move. Well, last week, they finally did—and it was a significant shift.

On Friday, September 5th, the average 30-year fixed mortgage rate dropped to its lowest point since October 2024. This marked the biggest single-day decrease we've seen in more than a year.

What Sparked the Drop?

Mortgage News Daily explains that the drop in mortgage rates happened because the August jobs report was weaker than expected for the second month in a row. This news influenced the financial markets, leading mortgage rates to fall as a reaction.

We're starting to notice that the economy might be slowing down. As people become more confident about where the economy is headed, the markets are adjusting based on those expectations. Historically, this kind of shift usually causes mortgage rates to drop.

Why Buyers Should Pay Attention Now

This isn't just about a single day's news or one report. It’s about what the decline actually means for you.

There’s been a recent change that can actually save you some money when you buy a home. Take a look at the chart below to see how the monthly mortgage payment for principal and interest compares at 7%—which was the rate back in May—versus what rates are around now.

Just four months ago, your monthly payment would have been nearly $200 higher, meaning you’re now saving almost $2,400 a year.

How Long Will It Last?

It really comes down to how the economy and inflation move from this point on. Interest rates might go down a bit, or they could rise just a little.

Be sure to team up with a reliable agent and a lender you trust. They’ll watch inflation trends, job market news, and upcoming Fed decisions closely to help predict where mortgage rates might head next.

For now, just keep your attention here. No one can predict exactly where mortgage rates will go next, but the fact that they’ve finally moved after months of staying flat is a positive sign. If you’ve been feeling stuck in your home search or decision-making, this shift might be just the push you need to begin a new chapter. As Diana Olick, Senior Real Estate and Climate Correspondent at CNBC, points out:

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

— Diana Olick, Senior Real Estate and Climate Correspondent at CNBC

That gives you more reason to be hopeful than you've felt in a long time.

Bottom Line

This is the change you’ve been waiting for.

Mortgage rates have dropped more than they have in over a year. If they stay around this level, a home that felt out of reach just a few months ago might suddenly seem affordable again.

Curious how today’s rates could lower your monthly payment? Let’s get together so you can see the savings for yourself.