The Power of One: What a 1% Rate Drop Means

Mortgage rates are holding near their lowest levels in almost a year. That 1% dip from earlier highs may not sound like much at first - but in real estate, it’s a major shift.

Why a Single Point Matters

• More Buying Power. A 1% lower rate typically gives buyers about 10% more purchasing power. That means if you were qualified for an $800,000 home before, you could now stretch closer to $880,000 with the same monthly payment.

• Lower Monthly Costs. For buyers staying in the same price range, a 1% drop often reduces the payment by roughly 10%. That extra savings each month can be put toward other priorities, from upgrades to future investments.

What This Means for Today’s Market

The “Power of One” is especially important right now, as the Fed has moved to cut rates. When mortgage rates dip, demand often follows quickly - bringing more competition and stronger offers. Acting while rates remain near their lows can help buyers secure an advantage before the market heats back up.

The Bottom Line

Whether you’re stepping into the market for the first time or looking to upgrade, the current rate environment presents a rare opportunity. A single percentage point can change your options, your budget, and your timeline in a meaningful way.

👉 Let’s connect this week to run your numbers and see how you can put the Power of One to work for you.

Happy House Hunting!



EO&A Team


Elizabeth, Anne, Ian, Ksenia, Cliff, Annie, Erica, Mike, Beth, Nina, Sidra, Karen, Annie

707.312.0819
hello@eoanda.com
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