The $280 Shift in Affordability Every Homebuyer Should Know

If you put your home search on pause because of high prices or mortgage rates, it might be time to take another look.

Affordability is improving in 39 of the top 50 U.S. markets, according to First American — and it’s the fifth month in a row that buying a home has gotten a bit easier.

Monthly Payments Are Falling

Redfin data shows that the average monthly mortgage payment on a median-priced home is now $283 lower than just a few months ago — saving buyers roughly $3,400 a year.

That drop can make a real difference. A borrower with a $3,000 monthly budget can now afford a $468,000 home, about $22,000 more than in June.

What’s Behind the Change?

Two major shifts are improving affordability:

• Mortgage rates have eased from earlier highs

• Home price growth is slowing in many areas

  
  

As Andy Walden from ICE Mortgage Technology explains:

“The recent pullback in rates has created a tailwind for homebuyers. We’re seeing affordability at a 2.5-year high.”

With rates dipping and prices stabilizing, affordability is finally improving.If you’ve been waiting for the right moment to buy, this could be it.

Talk to a trusted agent or lender to see how much more home your budget can get you today.