10 Cities That Are Seeing the Biggest Savings on Mortgage Payments Since Rates Dropped
Written by
Adam Palasciano
Edited by
Angela Corry
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Inflation is finally cooling and the U.S. housing market is heating up thanks to increased demand. As reported by Redfin, the median sale price for a U.S. home was $434,720 as of October 2024. This represents a 5% year-over-year median sale price increase. To put this into perspective, the median sale price was just about $304,000 in March 2020 at the onset of the pandemic.
At the same time, mortgage interest rates are slowly dropping, too.
According to The Federal Reserve Bank of St. Louis, the 30-year fixed rate mortgage average in the U.S. currently hovers at around 6.69% as of Dec. 5, 2024. This is down from a recent high of 7.79% in October 2023.
With interest rates coming down, thanks in part to recent Federal Reserve interest rate cuts, more prospective homeowners can expect cheaper mortgages despite slightly higher average home prices. However, in some U.S. cities, you can save even more.
Here are the top 10 cities seeing the biggest savings on mortgage payments since rates peaked in descending order based on savings, according to Realtor.com:
San Francisco, California
- October 2023 median list price: $1,098,000
- August 2024 median list price: $969,000
- October 2023 monthly mortgage payment (at 7.79%): $6,384.26
- September 2024 monthly mortgage payment (at 6.02%): $4,692.67
- Savings since rates peaked: $1,691.59
Bridgeport, Connecticut
- October 2023 median list price: $889,225
- August 2024 median list price: $800,000
- October 2023 monthly mortgage payment (at 7.79%): $5,170.35
- September 2024 monthly mortgage payment (at 6.02%): $3,874.23
- Savings since rates peaked: $1,296.11
San Jose, California
- October 2023 median list price: $1,380,694
- August 2024 median list price: $1,399,000
- October 2023 monthly mortgage payment (at 7.79%): $8,027.97
- September 2024 monthly mortgage payment (at 6.02%): $6,775.07
- Savings since rates peaked: $1,252.90
Honolulu, Hawaii
- October 2023 median list price: $798,750
- August 2024 median list price: $725,000
- October 2023 monthly mortgage payment (at 7.79%): $4,644.29
- September 2024 monthly mortgage payment (at 6.02%): $3,511.02
- Savings since rates peaked: $1,133.26
Oxnard, California
- October 2023 median list price: $1,050,000
- August 2024 median list price: $1,050,000
- October 2023 monthly mortgage payment (at 7.79%): $6,105.17
- September 2024 monthly mortgage payment (at 6.02%): $5,084.93
- Savings since rates peaked: $1,020.23
Los Angeles, California
- October 2023 median list price: $1,159,000
- August 2024 median list price: $1,190,000
- October 2023 monthly mortgage payment (at 7.79%): $6,738.94
- September 2024 monthly mortgage payment (at 6.02%): $5,762.92
- Savings since rates peaked: $976.02
San Diego, California
- October 2023 median list price: $999,000
- August 2024 median list price: $999,000
- October 2023 monthly mortgage payment (at 7.79%): $5,808.63
- September 2024 monthly mortgage payment (at 6.02%): $4,837.95
- Savings since rates peaked: $970.68
Seattle, Washington
- October 2023 median list price: $792,250
- August 2024 median list price: $775,000
- October 2023 monthly mortgage payment (at 7.79%): $4,606.49
- September 2024 monthly mortgage payment (at 6.02%): $3,753.16
- Savings since rates peaked: $853.33
Boston, Massachusetts
- October 2023 median list price: $837,374
- August 2024 median list price: $834,500
- October 2023 monthly mortgage payment (at 7.79%): $4,868.86
- September 2024 monthly mortgage payment (at 6.02%): $4,041.31
- Savings since rates peaked: $827.55
New York, New York
- October 2023 median list price: $729,444
- August 2024 median list price: $750,000
- October 2023 monthly mortgage payment (at 7.79%): $4,241.31
- September 2024 monthly mortgage payment (at 6.02%): $3,632.09
- Savings since rates peaked: $609.22
More From GOBankingRates
