Gaby Lockhart · September 2, 2026

How rate changes affect what you can afford

Mortgage Market Update

Gaby Lockhart

Gaby Lockhart

Wednesday, September 2, 2026

How rate changes affect what you can afford

Hi there. This week I want to talk about something that catches a lot of borrowers off guard: the connection between mortgage rates and your actual buying power.

National Mortgage Rates · August 27, 2026

30-Year Fixed

6.66%

FHA 30-Year

6.55%

VA 30-Year

6.38%

Rate trend

Source: Freddie Mac PMMS & Optimal Blue via FRED

Rates shown are national averages and are provided for informational purposes only. Actual rates vary based on credit profile, loan amount, and market conditions. Please contact us for a personalized rate quote.


Affordability Check

What changing rates mean for your buying power

When mortgage rates move, your affordability shifts too—sometimes in ways that surprise people. A higher rate doesn't just mean a bigger monthly payment; it also affects how much home you can qualify to borrow. On the flip side, if rates drop, that same budget might unlock access to a more expensive property. Understanding this relationship helps you plan smarter, whether you're shopping now or thinking ahead. If you've been watching the market and wondering how recent moves have changed your position, I'd be glad to run the numbers with you and show you exactly where you stand.

Reach out anytime—I'm here to help you understand what your budget can really do.

Tip of the Week

Your mortgage interest may be tax-deductible if you itemize. Check with your tax professional to see if it benefits you.

Tips for Homeowners

Understanding Mortgage Points

1.

One mortgage point equals 1% of your loan amount. Paying points ("buying down the rate") reduces your interest rate — typically 0.25% per point, though this varies by lender and market.

2.

Calculate your break-even: divide the cost of the points by your monthly savings. If it takes 4 years to break even and you plan to stay 10 years, buying points makes sense.

3.

Points paid on a home purchase are generally tax-deductible in the year paid (if you itemize). Points on a refinance must be deducted over the life of the loan.

Have questions about how any of this affects your mortgage or home purchase? We're here to help — reach out to the Gaby Lockhart team any time and we'll walk you through your options.

Your Mortgage Advisor

G

Gaby Lockhart

Gaby Lockhart

gabyl@barrettfinancial.com

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