Over the past few years, homebuyers have had it rough. High home prices, steep mortgage rates, and wages that couldn’t keep up made it feel nearly impossible to buy. But this fall, the tide may be turning.
Recent data from Redfin reveals that the average monthly mortgage payment is about $290 lower than it was just a few months ago. That’s a significant shift—driven by improvements in the three biggest affordability factors: mortgage rates, home prices, and wages.
Mortgage Rates Are Easing
Mortgage rates have dipped from around 7% earlier this year to approximately 6.3% now. That may not sound like a huge drop, but it can have a noticeable effect on monthly payments. For example, on a $400,000 loan, that decrease could save you about $190 per month—just from the rate change alone. According to the Mortgage Bankers Association, this decline has already sparked the highest level of buyer activity since 2022.
Home Price Increases Are Slowing
After years of sharp appreciation, home prices are finally leveling off. Nationwide, price growth has cooled to the low single digits, and some areas are even seeing slight declines. This slower pace gives buyers more time—and room—to plan and negotiate.
Wages Are Finally Catching Up
Here’s some good news from the job market: wages are now growing faster than home prices. The Bureau of Labor Statistics reports wage growth of around 4% annually, which is helping to bridge the gap between earnings and housing costs.
Bottom Line
Buying a home is still a major investment, but the market is showing signs of becoming more buyer-friendly. If you hit pause on your search earlier this year, now could be a smart time to reassess. Reach out to a trusted real estate professional (like me!) to review your options and explore what’s newly within reach.
