Mortgage rates are falling, is this the right time to buy a home? [Video]

Mortgage rates have already started to come down from recent highs, largely due to the prospect of a Federal Reserve-induced economic slowdown. The average rate for a 30-year, fixed-rate mortgage dropped to 6.35% on August 29 from 6.46% a week ago, the lowest mortgage rates have been in 15 months, according to Freddie Mac.

“Would-be homebuyers are likely going to get a much more attractive rate today than they would have just a few short months ago,” said Jacob Channel, senior economic analyst at LendingTree.

Still, many home shoppers are anchored to the fact that mortgage rates hit rock bottom only a few years earlier after the Fed slashed its benchmark interest rate to near zero, according to Dottie Herman, vice chair at Douglas Elliman.

“I’ve been in the business 30 years and I’ve never seen 2.5% to 3% in my lifetime, other than during the pandemic — I …