Mortgage rates have hit a low point since 2023, largely due to easing inflation and the Federal Reserve’s cautious stance on interest rate cuts.

This shift impacts you directly, whether you’re looking to buy a home or refinance an existing mortgage.

With the average 30-year fixed-rate mortgage now at about 6.5%, your options are expanding. But what does this really mean for you? Let’s break it down.

Factors Contributing to the Decline in Mortgage Rates

As mortgage rates continue to drop, several key factors are at play.

Economic Conditions

• Inflation: After peaking in 2023, inflation has moderated, allowing rates to stabilize.

• Federal Reserve Policies: The Fed’s cautious approach to rate cuts has helped keep mortgage

Mortgage points can be a confusing topic. 

Some people say you should pay for them. Some say you shouldn't.  Some people don't even really know what they are. So, to clear up the confusion, we went to an expert. Mortgage Specialist Jason Hellman from Dundee Banking spoke with us recently about the Great Points Debate. His answers are fantastic and informative. Enjoy!

When talking about mortgages, what does the word “points” mean?

“Points” is mortgage industry jargon for pre-paid interest charged as a fee at closing. Historically, “one point” was charged by lenders to close a loan.  One point is one percent of the loan amount.  This practice has changed over time.  In most markets, the norm has transitioned from one-point to no-points as a