Mortgage Rates Drop to Lowest Level in over a Year and a Half

Mortgage rates have just hit their lowest level in over a year and a half, and that’s exciting news for anyone in North County San Diego who's been waiting to jump into the housing market. Even a slight dip in rates can mean a more affordable monthly payment, but the recent drop is significant—making now a great time to explore your next home in the area.

The Federal Reserve cut rates by half a point last Wednesday, September 11th, marking the first rate cut since 2020. So, how does this impact mortgage rates and your home-buying plans? Mortgage rates had already been decreasing as investors anticipated the Fed’s move, and they’re expected to keep dropping through the rest of 2024 and into 2025.

How does this affect mortgage rates and your home-buying options? Call us today to discuss how you can benefit from these changes and make your move in the market.

But if you want to see it to believe it, here’s how the math shakes out. Take a closer look at the impact on your monthly payment.

The chart below shows what a monthly payment (principal and interest) would look like on a $400K home loan if you purchased a house back in April (this year’s mortgage rate is high), versus what it could look like if you buy a home now (see below):

Going from 7.5% just a few months ago to the low 6s has greatly impacted your bottom line. In just a few months, the anticipated monthly payment on a $400K loan has come down by over $370. That’s hundreds of dollars less per month.

What does this mean for San Diego buyers? More affordability means more people can enter the housing market. Still, with the low supply of available homes and an influx of newly qualified buyers, prices are likely to keep rising.

Bottom Line

Don’t wait—call us today to get into the market before prices increase and bidding wars make a comeback. The Shafran Realty Group will guide you every step of the way so you can focus on finding your dream home, and we’ll handle the rest!