To everyone waiting on mortgage rates to fall, the time has sort of come. And while they’re nowhere near the historic lows that fueled the pandemic housing boom, they have lessened in recent months. On the back of last week’s inflation reading, mortgage rates “dropped to their lowest level since March,” according to an analysis from Redfin; the daily mortgage rate was 6.85%, at the time.
With that mortgage rate, a homebuyer on a $3,000 a month budget could afford a home priced at $447,750 per Redfin’s calculation. “That buyer has gained $22,250 in purchasing power since mortgage rates hit a five-month peak in April, when they could have bought a $425,500 home with an average rate of 7.5%,” the analysis read.
