Mortgage Rates Are at Their Lowest in a Year
According to Freddie Mac, mortgage rates have dropped by more than half a percent since January 2025. This brings them to their lowest levels in nearly a year. That’s great news for buyers and homeowners, but there’s a catch.
The last time rates dipped this low, they jumped back up quickly. Why? Because of bond market concerns over inflation and government debt. Unfortunately, those concerns haven’t gone away. Deficits are still growing, which could send rates higher again.
That’s why waiting could cost you. Acting now may give you the chance to lock in savings before rates rise again.
Three Ways You Can Benefit Today
1. Buy a Home
Lower rates mean stronger purchasing power. You may be able to afford more home for the same monthly payment compared to just a few months ago.
2. Refinance Your Mortgage
If your current rate is higher than today’s levels, a “rate-and-term” refinance could reduce your monthly payment. You might also consider a “cash-out refinance” to access your home’s equity for renovations, debt consolidation, or investments.
3. Use Your Home Equity
A home equity loan or line of credit allows you to borrow against the equity you’ve built. This can be a smart way to fund large expenses or create a financial safety net.
Should You Wait for the Fed to Cut Rates?
It’s a common question, but the answer is no. The Federal Reserve sets short-term interest rates, which mainly affect credit cards, business loans, and home equity lines of credit.
Mortgage rates are different. They move daily based on the bond market, not the Fed’s decisions. That’s why mortgage rates have already dropped over 0.5% even before the Fed makes any cuts.
If you’re in a position to benefit, the time to act may be now.
Final Thought
Mortgage rates don’t stay low forever. With economic risks and government deficits still in play, rates could turn upward at any time. Whether you’re buying, refinancing, or tapping equity, today’s market gives you a rare window of opportunity.
👉 If you’d like a personalized strategy to make the most of these changes, reach out today.