Mortgage interest rates have taken a welcome step lower in the past nine days—and that means homeowners have a fresh opportunity to refinance.
According to Freddie Mac, the 30-year fixed mortgage rate slid to 6.35% the week ending September 11, down about 0.15% from the prior week.
The 15-year and 20-year fixed fell as well, landing around 5.875%.
For investment properties and 2nd homes, we are seeing rates in the mid 6% range, as well.
Other industry surveys—Bankrate, Money.com, and Reuters—are showing similar declines across the board.
What’s Driving the Drop
The reason for the dip lies in the bond market. The 10-year Treasury yield, which heavily influences mortgage rates, has retreated in recent days.
Investors are increasingly betting that the Federal Reserve will begin cutting short-term interest rates later this month.
Combined with softer labor market data and easing inflation pressure, long-term yields have fallen—and mortgage rates have followed.
Treasury Dips Don’t Last Long
If this feels like déjà vu, that’s because it is. Since mid-2023, there have been eight significant downward moves in the 10-year Treasury yield.
You can see them highlighted in the chart above.
Each one of those dips lasted anywhere from just three days to three weeks before the trend reversed and rates climbed again.
That’s the key takeaway: lower-rate windows don’t last long. Waiting to see if rates fall further often means missing the opportunity altogether.
Why Refinancing Now Makes Sense
If you bought a home within the past two and a half years, there’s a good chance your mortgage rate is higher than where the market is today.
Even a small rate reduction can create meaningful monthly savings and improve long-term financial flexibility.
If you’ve recently completed a cash-out refinance, now may be an especially smart time to review your options. Lowering your interest rate can reduce the cost of carrying that debt, even if you pulled equity from your home earlier this year.
Beyond lowering monthly payments, refinancing may also help you:
- Switch from a 30-year to a 15- or 20-year term, paying off your home faster.
- Consolidate higher-interest debt into your mortgage at a lower rate.
- Remove mortgage insurance if you’ve built enough equity.
The Time to Act Is Now
Rates are still volatile.
Inflation readings, labor reports, and Federal Reserve announcements can all shift the bond market quickly. The history since 2023 is clear: when Treasury yields dip, mortgage rates dip too—but they rarely stay down for long.
That’s why now is the time to act.
If your current mortgage is above today’s averages, let’s run the numbers together. Locking in while rates are on the downside could secure savings that last for years to come.
Here’s The Bottom Line
Lower rates don’t wait around. If you’ve bought a home in the past 2.5 years or completed a recent cash-out refinance, this is your window to refinance into a smarter mortgage.
Reach out to me today to make sure you are not missing out and we can begin to explore options.
If it’s easier, you can schedule a call with me here…
The blog postings on this site represent the positions, strategies or opinions of the author and do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deductions.
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