3 Reasons Affordability Is Showing Signs of Improvement This Fall
For the past couple of years, a lot of hopeful homebuyers felt stuck on the sidelines. Prices climbed fast. Mortgage rates climbed too. For many, the math just didn’t add up.
But good news is here: this fall, affordability is finally showing signs of improvement.
The latest data from Redfin shows the typical monthly mortgage payment is about $290 lower than it was just a few months ago. That’s a real difference for your budget (see chart below):
So why is this happening? Affordability in housing really comes down to three things:
- Mortgage rates
- Home prices
- Your wages
And right now, all three are finally moving in a better direction. Here’s a breakdown.
1. Mortgage Rates Are Trending Down
Mortgage rates have been dropping compared to earlier this year. In May, they hovered around 7%. Today, they’re closer to 6.3% (see chart below):
That may not sound like a lot, but it’s a game-changer. Even a fraction of a percent matters when it comes to monthly payments.
For example: On a $400,000 mortgage, dropping from 7% to 6.3% saves you nearly $190 per month just from rates alone. That’s real money back in your pocket.
As Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), said on September 10:
“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 Prices Are Moderating
After years of sharp increases, home price growth has cooled. That’s giving buyers a breather.
Odeta Kushi, Deputy Chief Economist at First American, notes:
“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.”
Translation: prices aren’t soaring anymore. In some markets, they’ve even ticked down. This moderation makes it easier to budget and opens the door for more opportunities.
3. Wages Are Growing
According to the Bureau of Labor Statistics (BLS), wages are up around 4% year over year. That’s meaningful because, as Lawrence Yun, Chief Economist at NAR, explains:
“Wage growth is now comfortably outpacing home price growth, and buyers have more choices.”
That means the average paycheck is stretching a bit further than it did before—always good news when you’re buying a home.
What This Means for You
When you combine lower mortgage rates, slower price growth, and stronger wages, buying a home is a little easier this fall than it was just a few months ago.
The data shows it clearly: typical mortgage payments are already down nearly $300 a month compared to spring.
Bottom Line
If you’ve been waiting, now may be your moment. The fall market is offering a window of opportunity before the busy spring season kicks in and competition heats up again.
Let’s run the numbers together. I’ll walk you through your budget, what’s changed, and whether this fall is the right time to move from window-shopping to key-turning.
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