Mortgage Rates Just Dropped to 6.29% - What Homebuyers and Homeowners Need to Know

by Jennifer S. Goodman

Mortgage rates

After months of mortgage rates hovering stubbornly above 6%, we finally have some encouraging news: rates have dipped to 6.29%, marking the biggest single-day drop in over a year. For homebuyers, this shift feels like a long-awaited breath of fresh air. But before you start celebrating, let’s unpack what this means, why it’s happening, and what you should watch out for.

Why the Drop in Mortgage Rates Matters

For anyone planning to buy a home, even a small percentage point change in rates can make a big difference. On a $400,000 mortgage, the move from 6.75% to 6.29% can shave more than $100 off a monthly payment. Over the life of a 30-year loan, that adds up to tens of thousands of dollars in savings.

This dip also comes at a time when affordability has been a major barrier for buyers. Home prices remain high in many markets, so lower borrowing costs could help open the door for those who’ve been waiting on the sidelines.

How Today’s Rates Compare Historically

Even though 6.29% feels high compared to the ultra-low 3% rates we saw in 2020 and 2021, it’s important to remember that those were historic anomalies. Looking back over the past few decades, today’s rates are closer to “normal.”

In the early 2000s, average mortgage rates hovered around 6–7%.
In the 1980s, rates soared into the double digits — sometimes above 15%.

So while today’s rates can feel challenging, they’re still well below historical highs.

Mortgage Scam Alert: Stay Safe When Rates Shift

Here’s the PSA: whenever mortgage rates move sharply, scammers see opportunity. Some homeowners have already reported getting calls from people pretending to be their mortgage company and offering special refinance deals. Many of these are scams designed to trick you into handing over sensitive personal information.

Protect yourself by remembering these tips:

Be skeptical of unsolicited phone calls about refinancing.
Never give out Social Security numbers or banking details unless you initiated the call.
If you’re interested in refinancing, contact your lender directly or work with a trusted mortgage specialist.

Is Now a Good Time to Refinance or Buy?

The answer depends on your personal situation. If you bought a home in the past year at a higher rate, now might be a smart time to explore refinancing. Lowering your rate could save you hundreds per month.For buyers, today’s rates improve affordability, though home prices remain high. Many experts believe rates will continue to fluctuate, so your best strategy is to make a decision based on your long-term needs, not just the daily headlines.

Need Guidance? I Can Connect You with a Mortgage Specialist

Every buyer and homeowner’s situation is unique - that’s why it helps to have a trusted professional run the numbers for you. I work with excellent mortgage specialists who can:

Calculate your potential monthly savings if you refinance.
Help you explore loan programs that fit your financial goals.
Walk you through today’s market and show you your real options.

If you’re curious about whether this rate drop could save you money or help you get into a new home, reach out. I’ll connect you with a mortgage pro who can give you clear, honest answers.

Bottom Line

The recent drop to 6.29% is a welcome shift and a reminder that the housing market is always evolving. For some, this may be the right time to refinance. For others, it could mean renewed opportunities to buy. Whatever your path, celebrate the progress — but stay savvy and protect yourself from scams.

And remember: if you’d like to see exactly how these rates could affect your budget, I have trusted mortgage specialists ready to help you crunch the numbers and explore your refinancing or homebuying options.

GET IN TOUCH

Jennifer S. Goodman

Email: jennifer@livinginaustintexas.com Tel: +1(512) 839-3855

License ID: 662798