Mortgage rates have dropped to 6.48% for 30-year fixed loans—here's how it impacts
buyers and sellers today.

Are you wondering if now is the right time to buy a home? Mortgage rates have dropped to 6.48% for 30-year fixed loans—the lowest in a year. As you may have noticed, whenever mortgage rates tick down, every media source quickly reports it. But what are the actual current rates, and how are they affecting our market? 

Here’s what’s happening:

As of August 28, according to Bankrate.com, the current mortgage rates are:

• 30-year fixed: 6.48%

• 15-year fixed: 5.8%

• 30-year jumbo: 6.63%

These rates are the lowest in the past year, and we expect them to continue decreasing in the coming months and years.

"Mortgage rates have hit one-year lows, and affordability is up—now's the time to act."

So, what does this mean in practical terms? Let's take a $500,000 loan as an example:

• 30-year fixed at 6.48%: Monthly principal and interest payment of $3,154.

• A year ago, at 7.3%, payment was $3,435.

• 15-year fixed at 5.8%: Monthly payment of $4,160.

• A year ago: $4,411.

• $1 million jumbo loan at 6.63%: Monthly payment of $6,646.

• A year ago, at 7.16%: $6,761.

That's a lot of numbers, so feel free to take a snapshot of this information for your reference.

Looking ahead, affordability is up and will continue to improve, which is great news for buyers. This increase in affordability is driving more buyers into the market. We're in a seller's market in nine of 17 major cities, as reduced supply meets increased demand.

If you've been on the fence waiting for mortgage rates to come down, that decline has already started. Beat the subsequent decline, and remember, if rates drop further, you can always refinance later. At Good Company Real Estate, we track these trends day in and day out. If you have any questions, don't hesitate to reach out. We're here to help you handle this changing market.