Over the past few weeks, mortgage rates hit their lowest point of the year – and it was big news.

If you’re in the market to buy a home, here’s what you need to know: whenever mortgage rates shift, even just a little, it can make a big difference in your monthly payment.

Why Small Rate Changes Matter

Take a look at the numbers for a $400,000 home loan:

• At 7.00%, your monthly principal and interest payment would be $2,661.21.

• Drop that rate to 6.75%, and the payment falls to $2,594.39 – saving you about $66 per month.

• At 6.50%, the monthly payment drops further to $2,528.27 – saving you nearly $133 per month.

That’s money back in your pocket, just from a small rate adjustment. Over the life of the loan, those savings really add up.

What to Expect Moving Forward

While experts aren’t projecting major drops in mortgage rates for the rest of 2025, smaller declines are still expected – depending on how the economy evolves. That means even modest dips could create opportunities for buyers to lock in a lower monthly payment.

Planning Ahead

If you’re curious how today’s rates might affect your budget – whether your loan amount is higher or lower than the example above – I can run the numbers for you.