Mortgage Calculator: See How Much You Will Save Now That Rates Have Dropped
A day after the Federal Reserve’s historic interest rate cut this week, mortgage rates dropped to 6.09% for a 30-year fixed loan.
That’s a two-year low—and a steep decline from nearly a year ago, when rates reached a 23-year high of 7.79% in October 2023.
This rate drop has “dramatically improved buying power across the U.S., further bolstered by easing prices in some areas,” notes Hannah Jones, Realtor.com® senior economic research analyst.
So how much are homebuyers now saving? We crunched the numbers to find out. Here are the basics nationwide:
- In October 2023, the national median list price was $425,000.
- The monthly mortgage payment (principal and interest) in October 2023 at the peak rate of 7.79% was $2,445.
- In August 2024, the national median list price was $429,990.
- The monthly mortgage payment (principal and interest) in September 2024 at the rate of 6.09% is $2,082.
- This means that homebuyers nationally save $363 per month since rates peaked. That’s a whopping $4,356 per year.
Curious about how much you could be saving yourself? Homebuyers can use the Realtor.com mortgage calculator to determine their own personal potential savings based on current interest rates, home prices in their area, and other variables tailored to their situation.
Cities that have seen the biggest savings
While the typical homebuyer will save $363 per month, there’s a wide range of savings based on the local housing market.
Generally, savings will be bigger where home prices are higher. Many of these expensive markets have also experienced price cuts since October 2023, which can further pad a buyer’s bottom line.
Source: REALTOR.com
By: Julie Taylor
