Good News: It’s Getting a Little Cheaper To Buy a Home

Why it matters: If you hit pause on your home search because of high costs, it might be time to look again. Key signs show affordability is improving this fall, making it a better moment to make your move.

The cost of buying a home boils down to three things: mortgage rates, home prices, and your wages. Right now, all three are finally shifting in a better direction for buyers.

The data shows the typical monthly mortgage payment is already down about $290 from its recent peak. Here’s the 1-minute breakdown of why 👇

1. Mortgage Rates Are Dipping 📉

Rates have dropped from around 7% in May to about 6.3% now. While that may not sound like a huge leap, it makes a real difference in your monthly payment.

• The bottom line: On a typical $400K mortgage, that drop saves you roughly $190 every single month. That’s real money back in your pocket.

This dip is already bringing buyers back into the market. According to the Mortgage Bankers Association, we recently saw the “strongest week of borrower demand since 2022.”

2. Home Price Growth Is Finally Chilling Out

After years of crazy price jumps, growth has finally slowed to “low single digits,” according to Odeta Kushi at First American. For buyers, this moderation is a huge relief.

• What this means for you: It’s much easier to plan your budget without worrying about massive, unpredictable price hikes. In some neighborhoods, prices have even dipped slightly.

3. Your Paycheck Is Growing Faster Than Home Prices ✅

Wages are up nearly 4% annually. For the first time in a while, your paycheck is likely growing faster than home prices are.

• The simple truth: As Chief Economist Lawrence Yun from NAR notes, this means “buyers have more choices” and a bit more buying power. In this market, every little bit helps.

The Takeaway

Lower rates, slower price growth, and bigger paychecks are creating a window of opportunity this fall. While affordability is still a challenge, the numbers are finally starting to move in your favor.

Have you been wondering if it’s time to jump back in? Let’s connect and run the numbers for your specific situation. This could be the perfect time to go from window shopping to getting the keys. 🏡