The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

World News

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

by admin September 6, 2025
September 6, 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

0
FacebookTwitterGoogle +Pinterest
previous post
The Real Drivers of This Market: AI, Semis & Robotics
next post
US-backed Gaza aid group slams Doctors Without Borders, accuses it of spreading ‘false’ claims

Related Posts

Starbucks will stop charging extra for nondairy milk

November 1, 2024

Tesla CEO Elon Musk says he favors ‘no...

May 25, 2024

Paramount says CEO Bob Bakish is stepping down,...

May 1, 2024

Hasbro says it’s taking steps to offset China...

February 22, 2025

Ford joins list of companies walking back DEI...

August 30, 2024

Major maritime strike could threaten ports across the...

September 22, 2024

Amazon ‘anti-union propaganda,’ employee surveillance loom over labor...

February 18, 2025

Budget airline Spirit is trying to go upmarket...

July 31, 2024

Target calls price hikes a ‘very last resort’...

May 22, 2025

Silver lining for consumers: Food price growth has...

May 15, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


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

    Latest

    • Ben & Jerry’s co-founder resigns, claiming parent company Unilever ‘silenced’ its campaigning

      October 2, 2025
    • YouTube to pay $24 million to settle Trump lawsuit

      October 2, 2025
    • The Real Drivers of This Market: AI, Semis & Robotics

      October 2, 2025
    • S&P 500 Breaking Out Again: What This Means for Your Portfolio

      October 2, 2025
    • White House memo says Democrats’ plan could spend $200B on healthcare for illegal immigrants

      October 2, 2025
    • TREY YINGST: Hamas must accept Trump peace plan to end war once and for all

      October 2, 2025

    Categories

    • Business (1,407)
    • Politics (4,634)
    • Stocks (1,683)
    • Uncategorized (45)
    • World News (1,400)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, 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 thetraderharbor.com | All Rights Reserved