The journey to homeownership as mortgage rates continue to fluctuate

Buying a home can be one of the most significant financial decisions in a person’s life.

As mortgage rates continue to fluctuate, both homebuyers and mortgage brokers are navigating a complex landscape.

Homeowner Stephanie Fuentes recently closed on her home and described the experience as an emotional roller coaster.

“I felt beyond blessed, to say the least,” said Fuentes. “You look at the numbers, and you’re like, ‘Can I do this?'”

But the journey to homeownership for Fuentes didn’t come without its hurdles.

“It was saving up for that down payment. Because at the end of the day, you still have to come out of pocket for something,” said Fuentes.

And it’s no surprise that, just like for many other Florida homebuyers, flood insurance quotes caught her off guard.

“It’s disgusting. I mean, to put it lightly, I would say it’s disgusting. Like it gives you this feeling in your belly, you’re like, ‘Oh my goodness. This is what flood insurance is costing,'” said Fuentes.

Luckily for her, the interest rate drop came at a good time.

According to Freddie Mac, the average 30-year fixed mortgage rate fell to 6.46%, the lowest level in more than a year and down significantly from last year’s peak of 7.79%

“We’ve seen an increase of refinance applications alone of 35%; there’s been an increase in sales 10.6%, and in applications to purchase have increased a 9.4%,” said Mortgage broker Tathiana Moreno.

Moreno has seen firsthand how recent rate drops have influenced the market and Fuentes’ mortgage.

“So, due to that one percentage less of an interest rate, she’s saving over $268,” said Moreno. “That’s over $268 a month. Long term, that’s almost $7,000 in two years alone.”

For the Fuentes family, the keys to their new home represent the beginning of a new chapter and the end of a long haul.

“We were so exhausted; we fell asleep on the mattress on the ground, on the floor. My husband and I and the dogs and my son and I remember waking up and thinking, ‘OK, no curtains are up, no bed is built. But you know what? Wow. What a blessing’,” said Fuentes.

Now, the big question is whether officials will go for a bigger rate cut for the housing market next month.

We will know after their next meeting on Sept. 17.

If you’re curious about what your payment might look like with the new rates, click here.