If you’ve been holding off on buying a home because of high mortgage rates, now might be the perfect time to take another look. Mortgage rates have been trending downward for seven straight weeks, offering buyers a new opportunity to jump back into the market.
According to data from Freddie Mac, the average 30-year fixed mortgage rate is now at its lowest level so far this year (see graph below). While the drop from over 7% to the mid-6’s may not seem like a huge shift at first glance, it can make a meaningful difference in your monthly mortgage payment—and ultimately, your buying power.
While that may not sound like a significant shift, it is noteworthy. Because the meaningful drop from over 7% to the mid-6’s can change your mindset when it comes to buying a home. Especially when the forecasts said we wouldn’t hit this number until roughly Q3 of this year (see graph below):
Why Are Mortgage Rates Coming Down?
According to Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), economic uncertainty has been a key driver of the recent rate drop:
"Mortgage rates declined last week on souring consumer sentiment regarding the economy and increasing uncertainty over the impact of new tariffs levied on imported goods into the U.S. Those factors resulted in the largest weekly decline in the 30-year fixed rate since November 2024."
"Mortgage rates declined last week on souring consumer sentiment regarding the economy and increasing uncertainty over the impact of new tariffs levied on imported goods into the U.S. Those factors resulted in the largest weekly decline in the 30-year fixed rate since November 2024."
In short, economic shifts are working in favor of homebuyers right now. And with spring being one of the busiest home-buying seasons, this rate drop couldn’t have come at a better time.
However, mortgage rates are unpredictable, and they can change quickly. The window of opportunity you have right now may not last forever.
What Lower Rates Mean for Your Buying Power
Even small rate drops can make a big difference in what you can afford. Let’s look at an example:
If you were buying a $400,000 home when rates were 7.04% back in mid-January, your monthly payment (principal and interest) would have been noticeably higher than what it would be at today’s rates (see chart below).
📉 In just a few weeks, the monthly payment on a $400K loan has dropped by over $100 per month! That’s a significant savings over the life of your loan.
When you’re making a big financial decision like buying a home, every dollar counts.
Just remember, shifts in the economy drove rates down faster than expected. But that can change, making rates volatile in the days and months ahead. So, if you’re waiting for rates to fall further before you buy, think hard about the current window of opportunity if you’re ready to act.
We Can Connect You with Lenders to Lock In the Best Rate
At Desert Cities Home, we understand that securing the right mortgage is just as important as finding the right home. That’s why we work closely with trusted lenders who can help you navigate the loan process and explore financing options that fit your needs.
💰 Want to see how much you could save with today’s lower rates? We can connect you with local mortgage expertswho will break down your numbers, discuss your financing options, and help you determine if now is the right time to buy.
Bottom Line
Mortgage rates have dipped, giving buyers more purchasing power and a potential opportunity to save. If you’ve been waiting for rates to ease before making a move, this could be your moment.
Would a lower monthly payment make homeownership feel more within reach? Let’s crunch the numbers together and explore your options. Reach out today, and we’ll connect you with the right lender to get started!
