{"id":3018,"date":"2025-09-29T04:54:30","date_gmt":"2025-09-29T04:54:30","guid":{"rendered":"http:\/\/ft365.org\/index.php\/2025\/09\/29\/timing-is-crucial-when-it-comes-to-mortgage-rates-bankrate\/"},"modified":"2025-09-29T04:54:30","modified_gmt":"2025-09-29T04:54:30","slug":"timing-is-crucial-when-it-comes-to-mortgage-rates-bankrate","status":"publish","type":"post","link":"http:\/\/ft365.org\/index.php\/2025\/09\/29\/timing-is-crucial-when-it-comes-to-mortgage-rates-bankrate\/","title":{"rendered":"Timing Is Crucial When It Comes To Mortgage Rates | Bankrate"},"content":{"rendered":"
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Since a weak jobs report in early September, mortgage rates have fallen sharply. For prospective homebuyers and refinancers, it\u2019s a nerve-racking moment. Will rates keep dropping? Or will they follow their recent pattern and quickly rebound?<\/p>\n

It\u2019s nearly impossible to know where rates will go in the next few weeks or months. But not acting on a rate dip can lead to regrets \u2014 and a higher monthly payment.<\/p>\n

Here\u2019s how much you could save if you buy when rates are low, rather than taking out a mortgage once they\u2019ve jumped again.<\/p>\n

The mortgage rate head fake of fall 2024<\/h2>\n

In September 2024, 30-year mortgage rates fell all the way to 6.2 percent, the low-water mark in recent years. The impetus was a looming rate cut by the Federal Reserve. While the Fed did go on to cut its benchmark rate three times, mortgage rates moved in the opposite direction. The average 30-year mortgage rate had bounced to 7 percent by November 2024.<\/p>\n

The average rate for a borrower who applied for a 30-year loan on Sept. 25, 2024 was 6.24 percent, according to Bankrate\u2019s daily mortgage rate survey. But just two weeks later, rates had leapt to 6.52 percent.<\/p>\n

Here\u2019s how the two scenarios play out on a $400,000 loan:<\/p>\n

\n\n\n\n\n\n\n
Rates<\/th>\nMonthly principal and interest payment<\/th>\n<\/tr>\n<\/thead>\n
6.24%<\/td>\n\n

$2,460<\/p>\n<\/td>\n<\/tr>\n

6.5%<\/td>\n\n

$2,528<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

That\u2019s a difference of $68 per month, or $816 per year<\/span>.<\/p>\n

There was an even bigger penalty if you waited until early November 2024, when rates were up to 7 percent. On a $400,000 loan, that means a $2,661 monthly payment, or $201 more than the monthly payment for the same loan just five weeks earlier.<\/p>\n

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Shop smarter for mortgage rates <\/h3>\n

Bankrate connects you to the latest lender offers, tailored to you. Find your low rate today.<\/p>\n

Explore mortgage rates <\/p>\n<\/div><\/div>\n

The inflation frustration of April 2024<\/h2>\n

In March 2024, everyone was hoping that inflation was finally under control, and that the Fed would reverse its aggressive rate hikes of 2022 and 2023. Instead, inflation remained above 3 percent, and the Fed held firm.<\/p>\n

As of March 27, 2024, the average rate on a 30-year loan was 7.01 percent. By April 17, after the previous month\u2019s inflation number increased to 3.5 percent, rates rose to 7.33 percent. Here\u2019s how those two situations affect the same $400,000 mortgage:<\/p>\n

\n\n\n\n\n\n\n
Rate<\/th>\nMonthly principal and interest payment<\/th>\n<\/tr>\n<\/thead>\n
7%<\/td>\n\n

$2,661<\/p>\n<\/td>\n<\/tr>\n

7.375%<\/td>\n\n

$2,763<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n