Rates Hit Lowest Level Since October 2024—Here’s Why

You’ve been waiting for what feels like forever for mortgage rates to finally budge. And last week, they did – in a big way.

On Friday, September 5th, the average 30-year fixed mortgage rate fell to the lowest level since October 2024. It was the biggest one-day decline in over a year.

What Sparked the Drop?

According to Mortgage News Daily, this was a direct reaction to the August jobs report, which came in weaker than expected for the second month in a row.

That signaled to financial markets that the economy may be slowing down. Historically, when certainty builds around that direction, mortgage rates tend to fall.

Why Buyers Should Pay Attention Now

This drop isn’t just a headline—it’s real money back in your pocket.

Here’s what the difference looks like:

• At a 7% rate (back in May 2025), a typical monthly mortgage payment was significantly higher.

• At today’s lower rate, your payment could be almost $200 less per month.

• That’s about $2,400 in annual savings.

For many buyers, that shift can mean the difference between “out of reach” and “affordable.”

How Long Will It Last?

That depends on where the economy and inflation head from here.

• If economic reports continue to point toward slowing growth, rates could fall further.

• But if inflation picks back up or new data surprises markets, rates could climb again.

That’s why it’s critical to stay in touch with your agent and lender. They’ll monitor inflation indicators, job market updates, and Fed policy moves to help you make a smart decision.

As CNBC’s Diana Olick put it:

“Rates are finally breaking out of the high 6% range, where they’ve been stuck for months.”

For buyers, that’s the good news you’ve been waiting for.

Bottom Line

Mortgage rates just had their biggest one-day drop in over a year—and that could open doors you thought were closed.

If you’ve been waiting for a shift to make homeownership more affordable, this could be it.

Want to see how today’s rates impact your monthly payment? Connect with an agent or lender to run the numbers and explore your options.