The $280 Affordability Shift Everyone Should Know About

If you paused your plans to move because of high rates or prices, it may finally be time to take a second look at your numbers. Affordability is improving in 39 of the top 50 markets, according to First American, for the 5th straight month where buying a home has started to get a little bit easier.

Let’s break this down into real dollars, so you can see the difference this could make for you (and your move).

Monthly Payments Are Coming Down

One of the clearest signs of this shift is in monthly payments. The latest data from Redfin shows mortgage payments on a median-priced home are now $283 lower than they were just a few months ago

(see graph below):

This kind of monthly  savings adds up fast, and totals nearly $3,400 over the course of a year.

When you’re putting together a homebuying budget, a few hundred dollars could be the difference between being comfortable buying and feeling like money’s a bit tight. And from a home-search perspective, it could even be enough to change the price point you can look at.

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."

This gives you a little more flexibility to find the one that’s right for you. 

What’s Behind the Shift?

Two key factors are working in your favor right now:

Mortgage rates have eased from their high earlier this year

Home price growth is slowing in many markets

Whether you’re a first-time homebuyer or someone looking to move-up into a bigger house, the shifts happening this year could make your move possible. Connect with a trusted agent or lender to see what your monthly payment would look like at today’s rates.

The savings could be the difference between “not yet” and “let’s go.”

Bottom Line

Affordability is improving in many markets.

If you’ve been sitting on the sidelines, this is your cue to start looking again. Let’s run the local numbers together so you can get a rough estimate of how much more buying power you may have than you did just a few months ago.

For questions call Elizabeth Alexander (719) 220-3939   

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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.