A Game-Changer for Homebuyers: Why Affordability Just Took a Big Step Forward

by Kevin Howard

If you've been holding back on buying because of high interest rates or steep home prices, now may be the moment to take a fresh look. In nearly 40 of the top 50 housing markets, affordability is improving. That’s the fifth month in a row where buying a home has begun to feel somewhat easier.

What “Better Affordability” Really Means

One of the clearest signs of this change is the drop in monthly payments. Recent data shows that the payment on a median-priced home is down by around $283 per month compared to just a few months ago. Over a year, that adds up to nearly $3,400 in savings.

That kind of reduction isn’t simply nice to have—it can shift your decision-making:

If you were previously facing a $3,000 per month payment cap, you could now afford a home priced at roughly $468,000 — about $22,000 higher than what you could afford back in June.
That room can allow you to aim for a different set of homes — maybe one with a bit more space, better neighborhood or upgraded features.

What’s Behind the Shift?

Two forces are working in favor of buyers right now:

Mortgage rates have pulled back from the highs they reached earlier this year.
Home-price growth is decelerating in many markets, making the math of buying a home less aggressive.

Together, they give buyers more breathing room—and change the affordability equation in a meaningful way.

Why This Matters (Especially for First-Timers & Move-Up Buyers)

Whether this is your first home purchase or you’re moving up into something larger, this shift is worth your attention. If you were sidelined because you thought “it’s just not affordable right now,” you may want to revisit the numbers with a trusted mortgage advisor and real estate professional—like one who knows your local market inside out. The savings might be the difference between “let’s wait” and “let’s move forward.”

What To Do Next

Re-evaluate your home-buying budget with current interest rates and home-price levels.
Reach out to a lender to get a fresh pre-qualification quote—so you know exactly what your monthly payment would be now.
Work with a qualified local agent to see what homes are available in the new price-range your budget supports.
Be flexible and strategic: With a little more purchasing power and market leeway, you might find a home that checks more boxes than you expected.

Bottom Line

Affordability in many markets is improving, and that changes the buying calculus for homebuyers. If you’ve been waiting for better timing—this could be it. Let’s connect and run the numbers together so you can see exactly how much more home you may be able to afford—and we’ll identify homes that fit that new scope.