3 Reasons Housing Affordability Is Looking Better This Fall

For the past few years, homebuyers across the U.S. have felt the squeeze of higher mortgage rates, fast-rising prices, and limited inventory. But this fall, the housing market is finally showing some signs of relief. While affordability is still a hurdle, recent shifts are making it just a little easier for buyers to make their move.

If you’ve been wondering whether it’s worth revisiting your home search, here are three reasons affordability is improving right now.

1. Mortgage Rates Are Cooling

Interest rates may still feel high compared to a few years ago, but even small declines can make a meaningful difference in your monthly budget.

For example, if you’re buying with a $400,000 mortgage, the difference between 7% and 6.3% saves you about $190 per month. That’s money that can go toward other expenses, or give you the breathing room to afford the home you really want.

And that’s not just theory. Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), noted:

Bottom line: as rates ease, more buyers are reentering the market,proof that even small shifts matter.

2. Home Prices Have Moderated

After several years of double-digit growth, national home prices are finally slowing down. While values are still edging higher, it’s happening at a much more manageable pace.

Odeta Kushi, Deputy Chief Economist at First American, explains:

For buyers, that moderation makes it easier to plan ahead and stick to a budget. And in some markets, prices have even ticked down slightly, creating opportunities that weren’t there before.

3. Wages Are Rising Faster than Prices

The latest data from the Bureau of Labor Statistics shows wages are up nearly 4% annually. That’s important because, for the first time in a while, paychecks are growing faster than home prices.

Lawrence Yun, Chief Economist at NAR, sums it up:

When your income grows faster than housing costs, affordability improves—even if just by a little. In today’s tight market, every bit counts.

What This Means for You

Put it all together, lower mortgage rates, slower home price growth, and rising wages, and buyers are seeing a window of opportunity this fall.

According to Redfin, the typical monthly mortgage payment is already about $290 lower than it was earlier this year. That shift could be enough to finally make the numbers work for you.

Bottom Line

Affordability is still a challenge, but conditions are improving compared to just a few months ago. If you’ve been sitting on the sidelines, now could be the right time to take another look.

Let’s crunch the numbers together and see what this market means for your budget. Whether you’re ready to buy this season or just planning ahead, I can help you prepare and put a strategy in place.

📩 Contact me at TessMarquez.com | (626) 712-5156 or call/text anytime!

By Tess Marquez, Realtor & Probate Specialist | TessMarquez.com