Why This Fall Shows Improvement For Buyers

For the past couple of years, many hopeful homebuyers have faced a tough market. Soaring home prices, rising mortgage rates, and stagnant wages made it hard to make the numbers work and for many, it just didn’t feel possible. But this fall, the outlook is showing some much-needed signs of improvement.

According to the latest data from Redfin, the typical monthly mortgage payment is now about $290 lower than it was just a few months ago. That’s a meaningful shift, and it’s being driven by positive changes in the three key factors that impact affordability: mortgage rates, home prices, and wages.

Mortgage Rates Are Down

Mortgage rates have dipped from around 7% earlier this year to closer to 6.3%. That might not sound like a major change, but it can have a real impact. For example, on a $400,000 mortgage, that drop could lower your monthly payment by roughly $190 just from rates alone. According to the Mortgage Bankers Association, this drop has already boosted buyer demand to its highest level since 2022.

Home Price Growth Has Slowed

After years of rapid increases, home prices are no longer skyrocketing. In fact, national price growth has slowed to the low single digits and in some areas, prices have even dipped slightly. This cooling trend offers buyers more breathing room to plan and budget.

Wages Are Climbing

Wages are now growing faster than home prices. The Bureau of Labor Statistics reports annual wage growth near 4%, which helps offset some of the cost challenges buyers have been facing.

In Conclusion

While buying a home is still a big financial commitment, the numbers are starting to move in a more favorable direction. If you paused your search earlier, this fall might be the right time to take another look. Contact me today and let’s revisit your budget and see what’s possible now.