{"id":82115,"date":"2025-09-05T10:40:33","date_gmt":"2025-09-05T17:40:33","guid":{"rendered":"https:\/\/www.redfin.com\/news\/?p=82115"},"modified":"2025-09-05T10:40:33","modified_gmt":"2025-09-05T17:40:33","slug":"purchasing-power-improves-rates-drop","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/purchasing-power-improves-rates-drop\/","title":{"rendered":"A Homebuyer on a $3K Budget Has Gained $22K in Purchasing Power Since June As Rates Drop to Lowest Level in 11 Months"},"content":{"rendered":"

Purchasing power has increased $7,500 in the last week alone, with rates falling to 6.3% on a weak August jobs report.<\/span><\/i><\/p>\n

The daily average mortgage rate dropped to <\/span>6.29%<\/span><\/a> on September 5, the lowest level in 11 months. That means a homebuyer on a $3,000 monthly budget has gained $7,500 since one week ago, when the average rate was roughly 6.5%.\u00a0<\/span><\/p>\n

A buyer on that budget can afford a $468,000 home with today\u2019s mortgage rate, compared to the $460,500 home they could have bought with a 6.5% rate. But even last week\u2019s 6.5% rate was a 10-month low; comparing to the average rate three months ago provides a sharper contrast. With a 6.9% rate, the average on June 5,\u00a0 a buyer on a $3,000 monthly budget could have bought a $446,000 home. That means a buyer on that budget has gained $22,000 in purchasing power over that short period. <\/span><\/p>\n