Mortgage Payments Drift Downward As Mortgage Interest Rates Slowly Decline

The average mortgage interest rate on a 30 year fixed rate mortgage has been slowly declining over the past three months, from 7.22% on May 2nd to 6.73% on August 1.  Thus, as you would expect, monthly mortgage payments are trending downward as well.

The graph above shows the principal and interest portion of the mortgage payment for a $300K purchase with 80% financing given the average mortgage interest rates each week for the past three months.

As you can see, this theoretical mortgage payment has declined by about $80 over the past three months... which provides almost $1,000 per year of savings to a buyer given the lower mortgage interest rates.