US EditionMortgage rates see biggest one-day drop in over a year
Mortgage rates dropped to 6.29%, the lowest since October 2024, after August job growth slowed significantly, impacting home affordability and builder stocks rose about 3%.
- Mortgage rates fell sharply on September 5, 2025, after the weaker-than-expected August employment report lowered the 30-year fixed rate to 6.29%.
- This decline follows a broader trend of a cooling labor market and rising unemployment from 4.2% in July to 4.3% in August, which pressures rates downward despite economic concerns.
- Homebuilding stocks like Lennar, DR Horton, and Pulte rose about 3% midday in response, while a homebuyer demand remains muted due to still high home prices and affordability challenges.
- Matt Graham, COO of Mortgage News Daily, explained that the market's response was clear and expected, given the significant attention surrounding the recent jobs report.
- The rate drop may improve affordability by about $169 monthly on a $450,000 home but homebuyers have yet to respond, indicating uncertainty about whether rates alone will revive demand.
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