Affordability Is Finally Moving in the Right Direction

According to Zillow, housing is typically considered affordable when it takes 30% or less of your monthly income to cover your expenses including your mortgage payment, taxes, insurance, and basic maintenance.

Why Affordability Is Improving

1. Mortgage rates have eased. Rates are near their lowest level in more than three years, which helps lower monthly payments

2. Home price growth has cooled. Prices aren’t falling nationally, but they’re growing much more slowly than they were a few years ago.

3. Wages are growing faster than home prices. This one matters a lot. As Mark Fleming, Chief Economist at First American, explains:

“When income growth exceeds house price growth, house-buying power improves—even if mortgage rates don’t decline meaningfully.” Understanding what’s changing locally is what really makes a difference. If you want to see how these trends show up in our area, let’s talk.

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