Mortgage Rates Ease: What It Means for Homebuyers and Homeowners

Mortgage rates have dipped again, giving both homeowners and buyers a reason to take another look at their options.

Rates at Their Lowest Since Last Fall

As of the first week of September, the average 30-year fixed mortgage rate fell to 6.50%, the lowest since October 2024. A weaker jobs report even pushed rates lower for a short stretch, with some lenders offering rates around 6.29%. The average 15-year fixed now sits at 5.6%.

These averages are based on conventional loans for borrowers with strong credit, but the big picture is clear: rates are easing, and that opens doors.

Refinancing Momentum is Building

Nearly 47 percent of mortgage applications last week were for refinancing, the highest level in almost a year. Many homeowners who locked in during 2023 or 2024 are finding they can reduce their monthly payments or shorten their loan terms by making a move now.

FHA and VA refinances in particular have been gaining traction, while conventional refinances remain steady.

Home Purchases Still Limited by Inventory

Purchase activity slipped slightly, but that has more to do with the number of homes on the market than with borrowing costs. Even so, lower rates help buyers stretch their budgets further, and being prepared with financing in place makes it easier to move quickly when the right property appears.

What’s Ahead for Rates

Two major events this month could shift rates again:

• September 11: the Consumer Price Index report

• September 17: the Federal Reserve’s next policy decision

These announcements often cause short-term swings in rates, so timing matters. It’s not unusual for lenders to reprice more than once in a single day when markets are moving.

What This Means for You

• Homeowners: If your current mortgage is at a higher rate, refinancing could lower your payment or shorten your payoff timeline.

• Buyers: Lower rates improve affordability, but the key is staying prepared so you can act fast in today’s competitive housing market.

The Takeaway

The last time rates fell into the mid-6 percent range, they didn’t stay there for long. Today’s environment could be a window of opportunity worth exploring.

At Excel Funding Real Estate Services Inc., we’re here to help you make the most of these changes. Whether you want to refinance your current loan or get pre-approved for your next purchase, give us a call at 310-245-5626 or email frances@excelfundingres.com. Let’s find the best path forward for you.