Mortgage interest rates have been declining for the past two weeks... or "plunging" as I saw it described in one news article.

Let's put it all in a bit of a larger context.

Mortgage interest rates rose above 7% in August...

...they peaked two weeks ago at 7.79%...

...and they have now dropped back down to 7.5% as of last week.

Looking back further...

...rates rose above 5% in August 2022...

...and then very shortly thereafter rose above 6% in September 2022.

I suspect we will see rates above 6% for at least the next year.

I think it's possible that we'll see rates get down to 7% over the next few months, but if they stay above 7% I won't be completely surprised.

If you are planning to buy a home, it will be important to check in with your mortgage lender for an updated payment projection.

Here's a potential payment in Rockingham County for a $300K purchase with 90% financing...

7.79% mortgage interest rate = $2,175 / month

7% mortgage interest rate = $2,029 / month

6.79% mortgage interest rate = $1,992 / month

Lower or higher mortgage interest rates certainly affect a monthly payment pretty quickly.

A full 1% drop from the peak of 7.79% down to 6.79% would reduce your mortgage payment by $184 / month.

Let me know if you'd like some recommendations for qualified local lenders with whom you could talk through a variety of financing scenarios.