If you’ve been waiting on the sidelines for mortgage rates to come down, here’s the good news — it’s already starting to happen. Rates have recently hit an important milestone, dipping into the 5% range for the first time in nearly three years.

This was a turning point. Mortgage rates are now down in the low 6% range, and experts expect them to stay around there for most of the year.

Here’s why that’s great for you.

Why Current Rates Are Such a Big Deal

A mortgage rate does more than change the interest on your loan — it influences the whole home-buying experience.

When mortgage rates hovered near 7% last year, many buyers felt priced out. Monthly payments climbed, budgets tightened, and affordability became a bigger hurdle—especially for first-time homebuyers, who felt the squeeze the most.

But industry experts say that's beginning to shift as rates slowly edge lower. Here's why.

Right now, borrowing costs are at their lowest in nearly three years — and that can expand the kinds of homes you can afford.

At 6% or lower, you can expect:

Lower monthly payments. On a $400K loan, that’s more than $300 less per month compared to when rates were closer to 7%.
More buying power. With extra room in your budget, you may be able to afford more home than you thought.

Put simply: you can now make a stronger offer, look in different neighborhoods, or buy a home that meets more of your must-haves — a noticeable change from when rates were at 7%.

This Opens the Door for 550,000 Buyers

To show how much this can help homebuyers like you, look at research from the National Association of Realtors (NAR). It finds that when mortgage rates are around this level—6% or lower—millions more households become able to afford a home. When rates sit at 6% or below:

About 5.5 million more households can now afford a median-priced home.
And around 550,000 of those buyers are expected to make a move within the next 12 to 18 months.

That’s not just guesswork — it’s pent-up demand finally getting the go-ahead. Now’s your chance to get in ahead of the crowd and buy before everyone realizes the rules just changed.

Whether rates hold in the low 6s or slip back into the high 5s, the math already favors you. The jump from a low 6% to a high 5% isn’t as dramatic as it sounds. But going from 7% down to 6%? That’s a meaningful change — and it’s one that’s already working in your favor.

An Important Call Out

Mortgage rates don’t exist on their own — home prices, local inventory, property taxes, insurance, and your own finances all play a role.

Just because the rate in this area looks good doesn't mean every house will be the right fit. That’s why getting pre-approved and going over the numbers with a trusted lender is so important.

Given current rates, more buyers are active than we’ve seen in years — so if buying didn’t make sense for you before, it’s worth giving it another look.