If you paused your plans to move because of high rates or prices, it may finally be time to take a second look at your numbers. Affordability is improving in 39 of the 50 markets, according to First American. And that’s the 5th straight month where buying a home has started to get a little bit easier.
Let’s break this down into real dollars, so you can see the difference this could make for you (and your move).
Monthly Payments Are Coming Down
One of the clearest signs of this shift is in monthly payments. The latest data from Redfin shows mortgage payments on a median-priced home are now $283 lower than they were just a few months ago.
This kind of monthly savings adds up fast, and total nearly $3,400 over the course of a year.
While this isn’t enough to completely change the affordability game overnight, think about it this way. When you are putting together a homebuying budget, a few hundred dollars could be the difference between being comfortable buying and feeling like money’s a bit tight.
And from a home-search perspective, it could even be enough to change the price point you can look at. According to Redfin:
“A borrower with a $3,000 monthly budget can now afford a $468,000 home, about $22,000 more than in June.”
And that’s a big deal if you haven’t found a home you love in your price range yet. It gives you a little more flexibility to find the one that’s right for you. Either way, that’s a big win.
What’s Behind the Shift?
Two key factors are working in your favor right now:
- Mortgage rates have eased from their high earlier this year
- Home price growth is slowing in many markets
Both of those things help your bottom line and give you a bit of breathing room if you are buying a home. Whether you are a first-time homebuyer or someone looking to move-up into a bigger house, the shifts happening this year could make your move possible.
For you, the savings could be the difference between “not yet” and “let’s go.”
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