It has been a “hot minute” since we have been able to celebrate a lengthy run down for mortgage interest rates. Yesterday rates were officially the lowest they have been since July 2023. Many lenders are quoting 6.75% for a 30 year fixed rate mortgage. After hitting a high of 8.25% in October, that is a significant difference!
So how much does 1.5% lower in interest rate mean for a borrower’s monthly payment? Let’s say someone borrows $250,000. At 8.25% that would be a principal and interest payment of $1,878/month. At 6.75% that drops to $1,621. A difference of $257 per month! That is significant for anyone’s budget.
So three cheers for mortgage rates! Let’s hope for more of the same!
