Mortgage Rates Hit an 11-Month Low: Here’s What That Means for Your Buying Power

Imagine shaving $150 off your monthly mortgage payment just because rates dipped. That’s exactly what’s happening right now. Mortgage rates have fallen to their lowest point in almost a year, and that shift is giving buyers more purchasing power than we’ve seen in months.

So what does that really mean for you? 

Why Do Mortgage Rates Matter So Much?

Think of mortgage rates like the price tag on borrowing money.

• When rates are high, your loan costs more each month.

• When they drop, even by just a little, your monthly payment goes down.

That savings gives you two choices:

1. Spend less each month for the same home.

2. Or stretch your budget to get into a bigger or better home.

A Real-Life Example

Let’s say a buyer has a $3,000/month housing budget.

• Back in June, with rates around 6.9%, that budget bought about a $446,000 home.

• A few weeks ago, at 6.5%, the same budget stretched to about $460,500.

• And now, with rates hitting a fresh 2025 low at 6.27%? That budget goes up to $468,000.

That’s $22,000 more purchasing power in just a few months—without changing a thing in your budget.

Small Monthly Savings = Big Long-Term Wins

Take the U.S. median home price of about $444,000.

• In June, the monthly mortgage payment was roughly $2,624.

• Today, it’s closer to $2,481.

That’s $150 saved every single month or tens of thousands of dollars over the life of your loan.

Think about what you could do with that extra money each month:

• Build your rainy day fund

• Pay down higher-interest debt

• Put more away for retirement

• Save for travel or bucket-list adventures

• Enjoy a little more breathing room in your budget

Why This Moment Matters

Rates this low don’t usually stick around for long. They shift with the economy, and right now buyers are in a unique window to take advantage. Lower rates don’t just make homes more affordable—they open doors to new opportunities.

If you’ve been waiting for the “right time” to buy, this could be it.

 Want to see how these numbers play out for your budget? Let’s run the math together and find out what today’s rates mean for your buying power in San Diego. Book a quick call with me here: https://links.townsites.com/widget/bookings/intro-call-with-shell