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Mortgage rates are falling, creating new opportunities for homebuyers. According to Mortgage News Daily, rates are now 6.74%, down from 7.26% in mid-January. FHA and VA rates are approaching 6%, a level that historically brings more buyers into the market.
This week’s Personal Consumption Expenditure (PCE) report, the Fed’s preferred measure of inflation, showed inflation is cooling at 2.5% headline inflation and 2.6% core inflation. Since inflation has a major impact on mortgage rates, this report was a positive sign.
Additionally, economic indicators suggest that rates could continue trending downward.
Next week, all eyes are on jobs data, including the BLS employment report and unemployment numbers. Unless there is a surge in job growth, mortgage rates should continue their downward trend.
The job market is already showing signs of slowing:
• Federal layoffs are increasing, though the full impact won’t be clear for a few months.
• Businesses relying on government contracts are pulling back.
• Consumer spending is down, and people are saving more.
• Credit card and auto loan delinquencies are rising.
If these trends continue, the economy could slow, inflation could cool further, and mortgage rates could drop even more.
Sellers are feeling the shift. Homes are taking longer to sell, and many are offering large concessions to close deals… $13K, $15K, even $20K in seller-paid closing costs.
Right now, you have leverage to negotiate closing costs and rate buydowns. However, as mortgage rates continue to drop, these incentives will likely disappear as demand increases.
Instead of waiting for home prices to rise, you can negotiate a seller-paid rate buydown to make homeownership more affordable.
📉 The 2-1 Buydown:
✅ Year 1: Your mortgage rate is 2% lower, significantly reducing your monthly payment.
✅ Year 2: Your mortgage rate is 1% lower, keeping payments more affordable.
✅ Year 3+: Your rate adjusts to today’s level, but by then, you may be able to refinance to a lower rate.
💡 Key Takeaway: Right now, you have negotiating power to secure closing cost assistance and rate buydowns, but once the market heats up, that leverage disappears.
For months, many homebuyers have been waiting for the right moment to buy. Now, with rates falling and sellers offering big incentives, you have an opportunity to secure a home with better terms before competition increases.
Sellers are already feeling the shift. As homes take longer to sell, more are offering concessions to attract buyers. But as mortgage rates continue to decline, the market will become more competitive, and those incentives will fade.
With rates trending downward and strong buyer incentives still available, this is a prime opportunity for you to buy before competition increases.
Now is the time to explore your homeownership options before market conditions shift. Buyers who act today can lock in savings and secure a home while they still have negotiating power.
The information contained is the viewpoint of the presenter(s). Individuals should consult their own financial representative.
Estimated Mortgage Payment is for exemplary purposes only. Contact a licensed loan officer for exact numbers and APR. Additional rates and terms may apply and are subject to change without notice. Loan scenario assumes a purchase price of Zillow's list price and a 10% down payment. Points and fees not included. Property tax, homeowners insurance, mortgage insurance, and HOA fees are approximate and may vary. Other fees may apply. Product displayed is a conventional 30-year fixed rate mortgage using the current average rate as shown on Mortgage News Daily (mortgagenewsdaily.com).
Estimated Qualifying Income assumes a homebuyer has a FICO score above 740, no other credit debt, and a debt-to-income (DTI) ratio of 43%.
For exact numbers and APR or to run a loan scenario based on your own credit and income, contact our office at (858) 259-8700.
Rate Source: Mortgage News Daily. Rates displayed are approximate, subject to change, and do not necessarily reflect rates available to you. MND’s methods involve an objective component based on lenders' raw prices as well as a subjective impression from their network of originators. For more information about how these rates are calculated, visit www.mortgagenewsdaily.com/mortgage-rates/about.
Mortgage News Daily (MND) is a trademark of Brown House Media, Inc. Zillow is a trademark of Zillow, Inc. CrossCountry Mortgage has not been authorized, sponsored, or otherwise approved by Brown House Media, Inc. or Zillow, Inc.
Equal Housing Opportunity. All loans subject to underwriting approval. Certain restrictions apply. Call (858) 259-8700 for details. All borrowers must meet minimum credit score, loan-to-value, debt-to-income, and other requirements to qualify for any mortgage program. CrossCountry Mortgage, LLC is an FHA Approved Lending Institution and is not acting on behalf of or at the direction of HUD/FHA or the federal government. CrossCountry Mortgage, LLC is not affiliated with or acting on behalf of or at the direction of the Veteran Affairs Office or any government agency. Certificate of Eligibility required for VA loans. By refinancing, the existing loan total finance charges may be higher over the life of the loan.
