Mortgage Rates Just Hit a Major Turning Point — Here’s Why Buyers Should Pay Attention

If you’ve been holding off on buying a home while waiting for mortgage rates to cool down, here’s some good news: that moment has already arrived. Rates recently dipped into the 5% range for the first time in nearly three years, marking an important milestone. While they’ve since settled into the low 6% range, experts expect them to hover around this level throughout the year — and that shift is a big deal for buyers.

Mortgage rates don’t just impact how much interest you pay over time. They directly shape what you can afford, how competitive your offers can be, and how comfortable your monthly budget feels. When rates hovered near 7% last year, many buyers — especially first-time buyers — felt squeezed. Higher monthly payments made affordability tougher and pushed a lot of people to the sidelines.

Now, that pressure is easing.

With borrowing costs at their lowest point in almost three years, buyers are seeing meaningful changes. At a 6% rate or lower, monthly payments are noticeably more manageable. For example, the payment on a $400,000 loan is more than $300 less per month compared to when rates were around 7%. That extra breathing room can translate into more buying power, a better location, or a home that checks more boxes on your wish list.

And you’re not alone in noticing the shift. According to research from the National Association of Realtors, when mortgage rates sit around this level, affordability expands dramatically. About 5.5 million more households can afford the median-priced home, and roughly 550,000 of them are expected to buy within the next 12 to 18 months. That’s a wave of pent-up demand preparing to re-enter the market.

Of course, rates aren’t the only factor that matters. Home prices, inventory, taxes, insurance, and your personal finances all play a role. That’s why getting pre-approved and reviewing your numbers with a trusted lender is essential.

Still, this rate environment is the most buyer-friendly we’ve seen in years. If buying didn’t work for you before, now is the time to take another look. Today’s rates could be the difference between waiting on the sidelines and finally getting the keys to your next home. Contact me today and let’s discuss your moving plans!