Homebuyers and those considering refinancing their mortgages received some positive news today as mortgage rates continued their downward trend. The average 30-year fixed-rate mortgage fell to its lowest level since February 2023, providing a much-needed boost to the housing market.

Key Rate Cuts and Market Trends

The European Central Bank also played a role in the declining rates, announcing its second interest rate cut in three months. The key rate was lowered to 3.5% from 3.75%, further easing borrowing costs.

The market opened today with a positive note, as mortgage-backed securities (MBS) saw an increase of 9 basis points early in the morning. While this gain moderated later in the day, it still contributed to the overall downward pressure on rates.

Economic Indicators

Other economic indicators released today also provided some support for the housing market. August import prices fell by 0.3% from July, aligning with expectations. Additionally, consumer sentiment rose to 69.0, exceeding the consensus forecast of 68.5.

Current Mortgage Rates

For a 30-year conventional fixed-rate mortgage, the par rate is currently at 6.000% with an APR of 6.194%. Based on a $400,000 purchase with 20% down, the monthly principal and interest payment would be $1,919.

If you’re looking for a lower rate, you can still find options. The lowest rate available today is 4.625% with an APR of 5.302%. However, this rate requires a discount of $17,590 to buy down the rate, resulting in a monthly principal and interest payment of $1,645.

Today’s mortgage rate update offers encouraging news for homebuyers and those considering refinancing. With rates at their lowest level in several months, now may be a favorable time to lock in a fixed-rate mortgage. It’s essential to consult with a mortgage professional to determine the best option for your individual financial situation.