Agency Of Income
  • World News
  • Stocks
  • Business
  • Politics

Agency Of Income

  • World News
  • Stocks
  • Business
  • Politics
Business

Mortgage rates see biggest one-day drop in over a year

by admin September 5, 2025
September 5, 2025
Mortgage rates see biggest one-day drop in over a year

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.

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’ve been stuck for months.

“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.”

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.

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.

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.

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.

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

The big question is whether the drop in rates will be enough to get homebuyers back in the market.

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.

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

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.

This post appeared first on NBC NEWS

previous post
RFK Jr. defends firing spree at CDC, vows ‘new blood’ at agency
next post
Trump signs order renaming Pentagon back to ‘Department of War’

Related Posts

Nearly 200,000 BMWs recalled over potential fire risk

September 30, 2025

Columbia Sportswear sues Columbia University, alleging trademark infringement

August 4, 2025

Amazon extends Prime Day discounts to 4 days...

July 9, 2025

What Trump’s Nvidia and AMD China deal means...

August 12, 2025

Is a Chinese chain’s blood orange cold brew...

July 7, 2025

Apple reveals complex system of App Store fees...

June 30, 2025

Lyft co-founders to step down from ride-hailing firm’s...

August 16, 2025

Lawsuit accuses Apple of stealing trade secrets to...

August 9, 2025

Kenvue stock drops 10% on report RFK Jr....

September 8, 2025

Shein and Temu see U.S. demand plunge as...

June 5, 2025

    Get free access to all of the retirement secrets and income strategies from our experts!

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Mike Johnson fires back at Hakeem Jeffries’ ‘desperate’ call for televised shutdown debate

    • Schumer’s shutdown scheme explained: Dems double down on Obamacare credits as standoff drags on

    • Schumer’s shutdown holds as Senate Dems block GOP bid to reopen government

    • Kennedy claims Democrats want millions for foreign LGBT projects, electric buses to end shutdown

    • Pope’s top diplomat blasts Israel’s Gaza offensive as ‘ongoing massacre,’ condemns Hamas attacks

    • Trump warns of ‘massive bloodshed’ if Hamas fails to agree to peace deal: ‘MOVE FAST’

    Categories

    • Business (163)
    • Politics (20)
    • Stocks (112)
    • World News (601)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: AgencyOfIncome.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 agencyofincome.com | All Rights Reserved