For the past couple of years, many hopeful homebuyers have felt stuck on the sidelines. Prices climbed higher and higher, mortgage rates spiked, and it seemed nearly impossible to make the numbers work. If you pressed pause on your plans, you weren’t alone.
But here’s the encouraging shift: affordability is finally showing signs of life again—and this fall might just give you the opportunity you’ve been waiting for.
The Numbers Are Easing Up
New data from Redfin shows the typical monthly mortgage payment has dropped by nearly $290 compared to just a few months ago. That kind of change adds up quickly, and it’s already bringing more buyers back into the market.
Why is this happening? It comes down to three key factors:
- Mortgage Rates Are Down
Back in May, mortgage rates hovered around 7%. Today, they’re closer to 6.3%. While that difference might not sound huge, it can have a big impact on your monthly payment. For example, on a $400,000 loan, that shift from 7% to 6.3% could save you around $190 per month. That’s real money back in your pocket—enough to cover utilities, groceries, or even a weekend getaway. Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association, recently explained: “The downward rate movement spurred the strongest week of borrower demand since 2022 . . . Purchase applications increased to the highest level since July and continued to run more than 20 percent ahead of last year’s pace.” Translation: buyers are noticing, and they’re acting. - Home Price Growth Has Slowed
After several years of steep price increases, the pace has finally cooled. According to Odeta Kushi, Deputy Chief Economist at First American: “National home price growth remains positive, but muted—low single digits—and we expect this trend to continue in the second half of the year.” For buyers, that’s a breath of fresh air. Prices are no longer climbing as fast, and in some local markets, they’ve even dipped slightly. That gives you more room to plan, budget, and potentially snag a better deal. - Wages Are Growing Faster Than Home Prices
The Bureau of Labor Statistics reports wages are rising by about 4% annually. Lawrence Yun, Chief Economist at the National Association of Realtors, points out: “Wage growth is now comfortably outpacing home price growth, and buyers have more choices.” That means your paycheck may stretch a bit further when it comes to affording a home, which is a major shift compared to the past few years.
Why This Fall Feels Different
When you put it all together—lower mortgage rates, slower price growth, and rising wages—the outlook for buyers looks brighter than it has in a long time. While affordability is still a challenge, it’s easier now than it was just a few months ago.
The proof? That $290 lower monthly payment is already making homeownership more realistic for many. And as more buyers step back into the market, competition will pick up again.
Bottom Line
If you’ve been holding back, now is the time to re-run the numbers. Connect with a trusted real estate professional who can walk you through what’s changed in your area. You might find that this fall offers the perfect window to move from dreaming about a home to unlocking the front door with your own keys.