Mortgage rates dropped this week, with the 30-year fixed rate averaging 6.24%, the lowest level since September 2024. 15-year fixed rates are at 5.54%, and 30-year jumbo rates are at 6.42%. The average 30-year fixed mortgage in this week’s survey had an average total of 0.31 discount and origination points.

The national median family income for 2025 was $104,200, with a median home price of $409,200. With a 20% down payment and a 6.24% mortgage rate, the monthly payment amounts to about 23% of the typical family’s income. The U.S. economy expanded at a strong 4.3% in the summer months, affecting mortgage rates.

Bankrate predicts the 30-year fixed rate to fall below 6%, possibly as low as 5.5%, due to expected Fed rate cuts and a recession scare. However, high inflation and potential Fed changes could cause rates to fluctuate around 6% throughout 2026. The Mortgage Bankers Association forecasts rates to remain at 6.4% for the year, citing a growing economy and stubborn inflation.

Read more at Yahoo Finance: Mortgage rates dip amid hopes of downward trend