{"id":136261,"date":"2025-09-06T04:22:12","date_gmt":"2025-09-06T04:22:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/136261\/"},"modified":"2025-09-06T04:22:12","modified_gmt":"2025-09-06T04:22:12","slug":"mortgage-rates-see-biggest-one-day-drop-in-over-a-year-2","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/136261\/","title":{"rendered":"Mortgage rates see biggest one-day drop in over a year"},"content":{"rendered":"

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

It’s 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\u2019ve been stuck for months.<\/p>\n

\u201cThis was a pretty straightforward reaction to a hotly anticipated jobs report,\u201d said Mortgage News Daily Chief Operating Officer Matt Graham. \u201cIt\u2019s 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.\u201d<\/p>\n

Graham said in a post on X that many lenders are \u201cpriced better\u201d 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\u2019s 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\u2019s 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

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\u2019s up close to 13% in the past month.<\/p>\n

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, have 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

\u201cHomebuyers grapple with a lack of affordability, sellers contend with more competition, and builders deal with lower buyer demand,\u201d Danielle Hale, chief economist at Realtor.com, said Friday in a statement after the release of the August employment report. \u201cThese conditions haven\u2019t spelled catastrophe, but have created a cruel summer for the housing market.\u201d<\/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","protected":false},"excerpt":{"rendered":"The average rate on the 30-year fixed mortgage dropped 16 basis points to 6.29% Friday, according to Mortgage…\n","protected":false},"author":2,"featured_media":136262,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101],"class_list":["post-136261","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/136261","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=136261"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/136261\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/136262"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=136261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=136261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=136261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}