Buyers Are Getting a Break: Payments Are Down Nearly $300 a Month

Home Affordability Is Improving — Here’s What That Means for You

If you pressed pause on your home search because of high rates or rising prices, it might finally be time to take another look at your numbers.

According to First American, affordability is improving in 39 of the top 50 markets — and that marks the fifth straight month where buying a home has started to get a little easier.

Let’s break down what that means in real dollars and cents.

Monthly Payments Are Coming Down

One of the clearest signs of this shift is in monthly mortgage payments.

The latest data from Redfin shows payments on a median-priced home are now $283 lower than they were just a few months ago.

That’s nearly $3,400 in annual savings — real money that can make a noticeable difference in your monthly budget.

While that may not completely solve the affordability challenge overnight, it can absolutely change how confident you feel about buying.

Even a few hundred dollars a month could mean the difference between stretching too far and feeling comfortable with your new home purchase.

And for some buyers, it’s also expanding what’s possible. Redfin explains:

“A borrower with a $3,000 monthly budget can now afford a $468,000 home, about $22,000 more than in June.”

That bump in buying power could be exactly what you need to find the home that checks all your boxes.

What’s Behind the Shift?

Two main factors are working in your favor right now:

1. Mortgage rates have eased from their highs earlier this year.

2. Home price growth has slowed in many markets.

Both of these are giving buyers some much-needed breathing room.

As Andy Walden, Head of Mortgage and Housing Market Research at ICE Mortgage Technology, explains:

“The recent pullback in rates has created a tailwind for both homebuyers and existing borrowers. We’re seeing affordability at a 2.5-year high . . .”

That’s encouraging news — especially if you’ve been waiting for the right conditions to make your move. Whether you’re a first-time homebuyer or looking to move up into your next space, the numbers may finally be shifting in your favor.

A good first step? Talk to a trusted lender or agent to see what your monthly payment would look like at today’s rates. You might be surprised how much more affordable things have become.

Bottom Line

Affordability is improving across much of the country — and that could reset the math on your move.

If you’ve been sitting on the sidelines, this is your cue to take another look.

Connect with a local real estate agent or lender to re-run your numbers and find out how much more buying power you may have today than you did just a few months ago.