THE $280 SHIFT IN HOME AFFORDABILITY EVERY BUYER SHOULD PAY ATTENTION TO

If you’ve been putting your homebuying dreams on hold because of rising mortgage rates or skyrocketing prices, it might finally be time to take another look. The real estate tide is shifting — and it’s shifting in your favor.

According to First American, home affordability is improving in 39 of the top 50 housing markets — marking the fifth straight month that buying a home has become a bit easier. But what does that really mean for your wallet? Let’s break it down into actual numbers.

Monthly Mortgage Payments Are Finally Dropping

Here’s the best news: monthly payments are on the decline. Recent data from Redfin shows that mortgage payments on a median-priced home are now $283 lower than they were just a few months ago.

That’s nearly $3,400 in savings per year — money that can now stay in your pocket instead of going toward your mortgage.

Sure, that might not sound life-changing at first. But when you’re crunching the numbers on your homebuying budget, a few hundred dollars each month can be the difference between feeling financially stretched and feeling secure in your purchase.

Think about it: that extra wiggle room could mean upgrading to a slightly larger home, choosing a better neighborhood, or simply enjoying a little more breathing room in your finances.

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.”

That’s a big deal. If you’ve been struggling to find the right home within your price range, this new affordability shift might be the game-changer you’ve been waiting for.

What’s Fueling This Change in Affordability?

Two main factors are driving this positive trend — and they’re both working in your favor:

1. Mortgage rates have eased from earlier highs.
   After months of climbing, interest rates have finally started to cool off. Even a small dip can make a huge difference in how much home you can afford.

2. Home price growth is slowing down.
   Sellers are becoming more realistic, and the market is balancing out. In many areas, home prices are no longer rising as aggressively as they did during the pandemic boom.

Together, these shifts are giving buyers like you a much-needed break.

Andy Walden, Head of Mortgage and Housing Market Research at ICE Mortgage Technology, summed it up perfectly:

“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 huge — especially if you’re a first-time homebuyer or someone looking to move up into a bigger space.

What This Means for You

If you’ve been waiting for the “right time” to buy, this could be it. Lower rates and slower price growth mean your money goes further — and your dream home may no longer be out of reach.

Now’s the moment to:

• Revisit your budget. That $280 monthly difference can stretch your buying power significantly.

• Connect with a trusted real estate agent or lender. They can help you run updated numbers based on today’s market.

• Explore your options. Homes that felt out of range a few months ago might now be within your grasp.

Even if you’re not quite ready to buy tomorrow, knowing where you stand today puts you a step ahead.

From “Not Yet” to “Let’s Go”

The bottom line? Affordability is improving — and the numbers don’t lie.

While we’re not seeing a total overhaul of the housing market, these consistent, steady shifts could make your next move possible sooner than you thought.

If you’ve been on the sidelines, this is your sign to take another look. Let’s crunch the local numbers together and see how much more buying power you have today compared to just a few months ago.

You might find that the difference between waiting and moving forward is just $280 a month — and that could be the push you need to finally say, “Let’s go.”