Now is a Good Time
If you put your homebuying plans on hold over the past year because of high mortgage rates or rising prices, it may be time to take another look. Conditions are starting to shift in your favor.
According to First American, affordability is improving in 39 of the top 50 housing markets across the country. Even better, this marks the fifth straight month that buying a home has gotten a little easier for many Americans.
If you’re wondering what that actually means for your budget, let’s look at how these changes are showing up in real dollars and cents.
Monthly Payments Are Starting To Come Down
One of the clearest signs of improving affordability can be seen in monthly mortgage payments. The latest data from Redfin shows that payments on a median-priced home are now $283 lower than they were just a few months ago.
Over the course of a year, that translates to nearly $3,400 in savings—money that stays in your pocket instead of going toward your mortgage.
Now, a few hundred dollars a month might not sound life-changing at first, but when you’re creating a homebuying budget, it can make a meaningful difference. For many people, that smaller monthly payment is what shifts buying from feeling stressful to feeling comfortable and manageable.
Even better, that improvement could expand the price range you can shop in. Redfin explains it this way:
“A borrower with a $3,000 monthly budget can now afford a $468,000 home, about $22,000 more than in June.”
That additional buying power can open up options you may not have considered before—perhaps a home in a better location, with more space, or with the upgrades you’ve been hoping for.
For anyone who has been discouraged by affordability challenges, this trend represents real progress and a window of opportunity to explore the market again.
What’s Behind the Improvement
Two major factors are driving this positive shift for buyers:
- Mortgage rates have eased from their recent highs earlier in the year.
- Home price growth is slowing in many markets, which helps stabilize overall costs.
When both of these conditions happen at the same time, they create a ripple effect that benefits buyers. Lower rates mean you can borrow more for the same monthly payment, and slower price appreciation gives you more negotiating room and choice.
Andy Walden, Head of Mortgage and Housing Market Research at ICE Mortgage Technology, explains what this combination means:
“The recent pullback in rates has created a tailwind for both homebuyers and existing borrowers. We’re seeing affordability at a 2.5-year high.”
In simple terms, buyers now have more breathing room than they’ve had in quite some time.
What This Could Mean for You
Whether you’re a first-time buyer hoping to make the leap from renting, or a current homeowner thinking about moving into a larger space, the current market could work in your favor.
A small change in rates or home prices can have a significant impact on what you can afford and how much you’ll spend each month. That’s why it’s important to revisit your numbers with a trusted local agent or lender. They can help you run updated scenarios based on today’s market and give you a clear sense of what’s possible.
You may find that the home that once felt out of reach is now comfortably within your budget. Or, you might discover that you can move sooner than you thought without stretching your finances too thin.
Either way, the landscape is improving, and exploring your options now can help you take advantage of these favorable conditions before the next market shift.
Moving Forward With Confidence
Affordability may not be perfect yet, but the progress we’re seeing is undeniable. Lower payments, slower price growth, and steadier rates are creating a window of opportunity that buyers haven’t had in years.
If you’ve been waiting for the right moment to act, this could be it. Reach out to a knowledgeable real estate agent or lender to review your updated numbers and explore how much more buying power you might have today compared to just a few months ago.
For many buyers, that difference could be the deciding factor between “not yet” and “let’s go.”