For the past couple of years, many buyers have felt priced out of the market. Home prices climbed quickly, mortgage rates hit levels we hadn’t seen in years, and a lot of people hit pause. Maybe you were one of them.
But this fall is bringing encouraging news: affordability is finally showing signs of improvement.
According to the latest data from Redfin, the typical monthly mortgage payment is down about $290 compared to just a few months ago. That shift comes from three key factors finally working in buyers’ favor:
1. Mortgage Rates
Mortgage rates have eased from around 7% earlier this year to closer to 6.3% today. A small difference on paper makes a real impact on your budget. For example, an average $400,000 mortgage at 6.3% costs about $190 less each month than it would at 7%.
And that’s been enough to bring more buyers back to the market. The Mortgage Bankers Association reports purchase applications recently reached their highest level since July 2022.
2. Home Prices
Price growth has cooled after years of rapid increases. Instead of double-digit gains, we’re now seeing low single-digit growth and in some markets, even slight dips. That moderation makes it easier to plan your budget and opens doors for buyers who may have been on the sidelines.
3. Wages
The Bureau of Labor Statistics shows wages are rising about 4% annually—outpacing home price growth. That means paychecks are stretching further, giving buyers a bit more breathing room.
What This Means for You
While affordability is still a challenge, conditions are improving. Lower rates, slower price growth, and stronger wages mean buying may feel more possible now than it has in quite some time.
The typical monthly mortgage payment is already about $290 lower than it was earlier this year. That’s a meaningful shift—and it could be the opening you’ve been waiting for.
Moving Forward
If you’ve been wondering whether now is the time to revisit your home search, this fall could be your moment. Let’s sit down, re-run the numbers, and explore how today’s market could work for you.
