{"id":135541,"date":"2025-09-05T21:19:08","date_gmt":"2025-09-05T21:19:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/135541\/"},"modified":"2025-09-05T21:19:08","modified_gmt":"2025-09-05T21:19:08","slug":"mortgage-rates-see-biggest-one-day-drop-in-over-a-year","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/135541\/","title":{"rendered":"Mortgage rates see biggest one-day drop in over a year"},"content":{"rendered":"

\"Mortgage<\/p>\n

The average rate on the 30-year fixed mortgage dropped 16 basis points to 6.29% on Friday, according to Mortgage News Daily, following the release of a weaker-than-expected August employment report.<\/a><\/p>\n

It marks the lowest rate since Oct. 3 and the biggest one-day drop since August 2024. Rates are finally breaking out of the high 6% range, where they’ve been stuck for months.<\/p>\n

“This was a pretty straightforward reaction to a hotly anticipated jobs report,” said Mortgage News Daily Chief Operating Officer Matt Graham. “It’s a good reminder that the market gets to decide what matters in terms of economic data, and the bond market has a clear voting record that suggests the jobs report is always the biggest potential source of volatility for rates.”<\/p>\n

Graham said in a post on X that many lenders are “priced better” than Oct. 3 and would be quoting in the high 5% range.<\/p>\n

The drop is a major change from May, when the rate on the 30-year fixed peaked at 7.08%. It’s big for buyers out shopping for a home today, especially given high home prices.<\/p>\n

Take, for example, someone purchasing a $450,000 home, which is just above August’s national median price, using a 30-year fixed mortgage with a 20% down payment. Not including taxes or insurance, the monthly payment at 7% would be $2,395. At 6.29%, that payment would be $2,226, a difference of $169 per month.<\/p>\n

A sign is posted in front of a home for sale on Aug.27, 2025 in San Francisco, California. <\/p>\n

Justin Sullivan | Getty Images<\/p>\n

That might not sound like a lot to some, but it can mean the difference in not just affording a home, but qualifying for a mortgage.<\/p>\n

Homebuilder stocks reacted favorably Friday, with names like Lennar<\/a>, DR Horton<\/a> and Pulte<\/a> all up roughly 3% midday. Homebuilding ETF ITB<\/a> has been running hot for the last month as rates slowly moved lower. It’s up close to 13% in the past month.<\/p>\n

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The big question is whether the drop in rates will be enough to get homebuyers back in the market.<\/p>\n

Mortgage demand from homebuyers, an early indicator, has yet to respond to gradually improving rates. Applications for a mortgage to purchase a home last week were 6.6% lower from four weeks before, according to the Mortgage Bankers Association.<\/p>\n

“Homebuyers grapple with a lack of affordability, sellers contend with more competition, and builders deal with lower buyer demand,” said Danielle Hale, chief economist at Realtor.com, in a statement Friday after the release of the August employment report. “These conditions haven’t spelled catastrophe, but have created a cruel summer for the housing market.”<\/p>\n

Some analysts have argued that buyers need to see mortgage rates in the 5% range before it really makes a difference. Home prices remain stubbornly high, and while the gains have definitely cooled, they are not yet coming down on a national level. In addition, uncertainty about the state of the economy and the job market has left many would-be buyers on the sidelines.<\/p>\n

Don\u2019t miss these insights from CNBC PRO<\/p>\n","protected":false},"excerpt":{"rendered":"The average rate on the 30-year fixed mortgage dropped 16 basis points to 6.29% on Friday, according to…\n","protected":false},"author":2,"featured_media":135542,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[448,28,122,18038,101,2053,85008,5250,85007,9399,18028,1170],"class_list":["post-135541","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-breaking-news-business","tag-business","tag-business-news","tag-dr-horton-inc","tag-economy","tag-housing","tag-ishares-u-s-home-construction-etf","tag-lennar-corp","tag-matt-graham","tag-mortgages","tag-pultegroup-inc","tag-real-estate"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/135541","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=135541"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/135541\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/135542"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=135541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=135541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=135541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}