The typical 30-year fixed mortgage rate from Freddie Mac decreased by 0.5 percent over the last several weeks. Fears of a possible recession led to the decline. Homebuyers around the nation should cheer this drop because mortgage rates have climbed sharply this year.

That's because rising interest rates effect how much you'll pay in monthly mortgage payments, which directly affects how much you can comfortably afford (as they have for the bulk of this year). The opposite is also accurate. Your purchasing power will improve when mortgage rates decline.

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