Rates Are Lowest Since October 2024 – What It Means for Buyers & Homeowners

Why Today’s Lower Rates Mean More Buying Power & Refi Opportunity

1. What’s happening with mortgage rates?

• As of September 5, 2025, Mortgage News Daily’s daily index reports a 30-year fixed rate of 6.29%, down 0.16 points from the prior day—a significant drop toward rates last seen in fall 2024 Mortgage News Daily+1.

• According to Freddie Mac, the 30-year fixed average is approximately 6.5%, the lowest since October 2024, and refinance applications have surged to nearly 47% of activity—the highest share in almost a year AP NewsFreddie Mac.

2. Why this matters for buyers: Greater buying power today

With rates steadily easing from mid-6% territory:

• Monthly payments shrink, making homes more affordable.

• Buyers can leverage this reduction to increase loan amount or improve cash flow.

• Even a 0.25% rate cut can save hundreds per month on a typical mortgage.

3. Sellers are softening—this amplifies the opportunity

While rates are improving, market demand has cooled. Sellers are:

• Offering price reductions, concessions, or leaving listings altogether AP News.

• This shift swings leverage into the buyer's favor—so locking in now can mean both lower payments and stronger negotiation power.

4. For homeowners: The refi window is wide open

If you bought any time in the past 24 months at rates above 6.5%, today’s rates may allow for:

• Meaningful payment reductions

• Refinancing into shorter terms or lower rates

• Capturing equity built-up, especially if home values have risen

The fact that refinance requests now make up nearly half of all mortgage applications signals a major market trend—homeowners are acting AP NewsNew York Post.

5. What’s driving the rate dip?

A cooler jobs report spooked the markets—weak payroll growth sent bond yields lower, which in turn triggered mortgage rates to slide Mortgage News DailyAP News.
Additionally, as interest rates approach psychologically significant thresholds, shifts in Mortgage-Backed Securities (MBS) flows can accelerate drops: rates hover near a “bucket boundary,” making swift moves more likely Mortgage News Daily.

What action should you take?

For Buyers

Shop now—enhanced affordability and leverage in your favor.

Use mortgage calculators to compare rates.

Getting Pre-Approved at Today’s Rates - Update your buying power.

Homeowners (within 24 months)

Get a refinance quote—saving on monthly costs is possible.

Use refinance mortgage calculators to compare rates

Run break-even scenarios (3/4% rule is a rule of thumb) Reddit

Consider term reduction (15-year vs. 30-year) if cash flow allows

Don’t wait for perfect—that’s yesterday’s excuse. With 30-year rates at a 12-month low, buying or refinancing today puts you in a stronger position than you’ve been in for a year. Whether you're finally stepping into your first home or looking to lower your costs, now’s the time to act—and Kirby & Angie are here to walk you through next steps.

Let me know if you want tailored refinance scenarios, CAP charts, or local Michigan home affordability comparisons—Kirby and Angie have your back!