How Lower Rates Increase Your Buying Power

Every 0.25% drop in interest rates can boost your buying power by 2–3%, and potentially save you thousands over your mortgage term.

For example:

• A buyer pre-approved for $500,000 at 5.75% might now qualify for roughly $515,000 at 5.5%.

• Over a 5-year term, that could mean thousands in interest savings, or extra room in your budget for the right home.

Pro Tip: If your pre-approval is more than 60 days old, now is the time to update it and see how the numbers have changed.

Why Timing Matters When Rates Drop

When rates fall, buyer activity increases. That means:

✅ More people re-entering the market
✅ More competition for listings
✅ More urgency among sellers

Getting pre-approved before the crowd gives you a serious advantage.
You’ll be able to act fast, negotiate confidently, and lock in rates before they rise again.

What to Do When Rates Drop

1️⃣ Revisit Your Pre-Approval

If you’ve been pre-approved within the past 90 days, your numbers have likely changed. Updating your file is quick, and it gives you an accurate snapshot of your current buying power.

2️⃣ Lock In a Rate While It’s Low

Lenders sometimes hold a reduced rate for 90–120 days. That means you can shop confidently while protecting yourself from future increases.

3️⃣ Get Expert Guidance

Every lender reacts differently to market changes. A broker can compare dozens of lender programs and help you find the one that fits your goals and timeline.

Real Example: How a Small Rate Drop Changed Everything

Kelsey, a first-time buyer, was approved earlier this year but decided to wait.
When rates dropped by just 0.25%, we re-ran her numbers, and her maximum purchase price jumped by $45,000.

That small change helped her land her dream condo, at the perfect time.

What Falling Rates Mean for Existing Homeowners

Even if you’re not buying, lower rates could still benefit you.

• Refinancing at a lower rate may reduce payments or free up equity

• A renewal at today’s rate could save thousands in interest

• You can consolidate high-interest debt into one lower-cost payment

A quick Mortgage Checkup will show you exactly what your options look like.

The Bottom Line: The Market Is Moving, Don’t Wait to See Where You Stand

Opportunities like this don’t last long. As rates drop, competition rises, and the best deals go to the most prepared buyers.

If you’ve been thinking about buying, upgrading, or simply reviewing your numbers:

Book your Free Mortgage Checkup today and see how much more you now qualify for.

You might be closer to homeownership than you think.