Mortgage Rates Hit a Three-Year Low — Here’s What It Means for You

by Betty Ortiz

After months of high borrowing costs, there’s finally some good news for the housing market, mortgage rates have dropped again, reaching their lowest level since 2022.

According to the Mortgage Bankers Association, rates have fallen to an average of 6.13%, a significant improvement from earlier this year when they were above 7%. The Federal Reserve also lowered its benchmark interest rate by a quarter point, helping push mortgage rates even lower.

So what does this mean for homebuyers and sellers in today’s market? Let’s break it down.

For Homebuyers: More Affordability and New Opportunities

If you’ve been waiting for the right time to buy a home, this could be your window. Even a small drop in rate, say from 6.5% to 6.1%, can lower your monthly payment by hundreds of dollars and increase your purchasing power.

Here are a few ways buyers can take advantage:

Negotiate a Lower Rate
Some lenders allow buyers to “buy down” their rate by paying mortgage points — small fees that can reduce your interest rate by 0.25% to 0.50%. Over time, that can save you thousands.
Consider an Adjustable-Rate Mortgage (ARM)
ARMs often start below 6% and can be a smart short-term option for buyers who plan to refinance or move within a few years.
Make a Larger Down Payment
Putting more than 20% down can help you qualify for a better rate and reduce your overall loan amount.
Get Pre-Approved Now
Rates can change daily, so locking in your rate while they’re low can make a big difference when you find the right home.

Tip for Los Angeles buyers: Lower rates mean you may now qualify for areas that were previously out of reach, especially in neighborhoods like Chatsworth, Porter Ranch, or Granada Hills, where home prices have remained stable but competitive.

For Sellers: More Buyers Are Coming Back

Falling interest rates don’t just help buyers, they help sellers too. When rates drop, buyer demand increases, and that can translate into more showings, more offers, and potentially higher sale prices.

If you’ve been hesitant to list because the market felt slow earlier this year, this shift could be your opportunity.

Here’s why sellers are paying attention:

More qualified buyers are re-entering the market.
Homes priced right are seeing multiple offers again.
Move-up sellers can take advantage of today’s lower rates for their next home.

💡 Example: If you’re an empty nester thinking about downsizing, you can sell while demand is rising and then buy your next home with a more affordable mortgage than what was possible just a few months ago.

The Bottom Line

Mortgage rates are now the lowest they’ve been in three years, and that’s opening doors for both buyers and sellers.

If you’ve been thinking about making a move, this could be your moment to:
✅ Revisit your buying power
✅ Refinance to lower your monthly payment
✅ List your home before buyer demand peaks again

Thinking About Your Next Move?

Whether you’re curious about how much your home could sell for or want to explore what you can afford with today’s lower rates, I’m happy to guide you.

📲 Let’s connect today — (818)270-7090. I’ll help you understand your options and make the most of this window of opportunity while rates are still low.

Betty Ortiz, REALTOR® | SRES® | Relocation, Buyer & Seller Specialist
With over 17 years of experience and a background in mortgage underwriting, Betty Ortiz serves Los Angeles County as a trusted expert in real estate. Specializing in seniors, relocations, buyers, sellers, and new construction, she combines deep market knowledge with genuine care to ensure every client enjoys a smooth, confident, and stress-free move.