For the past couple of years, it’s been tough for many homebuyers to make the numbers work. Home prices rose quickly, mortgage rates climbed, and affordability challenges forced many people to hit pause.
But this fall is starting to bring encouraging news. If you’ve been waiting for the right time to take another look at buying, affordability may finally be showing signs of improvement.
According to the latest data from Redfin, the typical monthly mortgage payment has dropped by about $290 compared to just a few months ago. And that shift comes down to three key factors:
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Mortgage rates
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Home prices
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Wages
Right now, all three are moving in a more favorable direction.
1. Mortgage Rates Are Easing
Mortgage rates have come down compared to earlier this year. In May, they were around 7%. Now, they’re closer to 6.3%.
That may not sound like much, but even a small drop makes a real difference. On an average $400K mortgage, today’s lower rate could save you nearly $190 per month compared to when rates were higher.
As Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association, notes:
“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.”
2. Home Price Growth Has Slowed
After years of rapid appreciation, price growth is finally moderating. 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.”
That moderation gives buyers more breathing room and predictability when budgeting. And in some local markets, prices have even dipped slightly, creating more opportunities.
3. Wages Are Rising Faster Than Prices
According to the Bureau of Labor Statistics, wages are up nearly 4% annually. Lawrence Yun, Chief Economist at NAR, explains:
“Wage growth is now comfortably outpacing home price growth, and buyers have more choices.”
That means your paycheck is going further today than it was in recent years, giving you more power in the market.
What This Means for Buyers
Lower rates, slowing prices, and stronger wages may be the combination that finally makes homeownership feel achievable again. And with typical monthly mortgage payments already down about $290 compared to earlier this year, the shift is real.
Bottom Line
If you’ve been waiting on the sidelines, this fall may be the time to take another look at buying. Work with a trusted local agent to re-run the numbers, go over your budget, and see how today’s conditions could work in your favor.
Start today by connecting with The Ace Estate Team for a personalized homebuyer strategy and access to the latest local opportunities.
