After months of hovering near seven percent, mortgage rates are finally trending downward—giving potential buyers a reason to re-enter the housing market. Freddie Mac reported that the average 30-year fixed mortgage rate fell to 6.35% for the week ending September 11, the sharpest weekly drop this year and the lowest level since last October. The decline comes as investors anticipate Federal Reserve rate cuts in response to a cooling labor market and slowing economic growth. With demand for mortgages surging to a three-year high, both purchase and refinance applications are climbing, signaling renewed energy in a market that has been stagnant for years.

Still, affordability remains a challenge as home prices continue to rise, with the national median existing-home price hitting $422,400 in July. Experts caution that while falling rates could encourage hesitant buyers to act especially if rates dip below six percent, true affordability gains may require slower price growth or even declines. Additional pressures like higher insurance premiums and limited housing supply keep many households on the sidelines. For buyers ready to act, however, the current rate dip may present a window of opportunity to secure better financing before the market shifts again.