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, according to First American. And that’s the fifth 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.
Please remember that the median price is the price in the middle. There are just as many homes available below that price as above. So, don’t be put off by that figure. There are homes in your price range!
While this drop isn’t enough to totally change the affordability game overnight, think about it this way. When you’re putting together a home buying budget, a few hundred dollars may be the difference between being comfortable buying a home and feeling like money is still a bit tight.
And from a home-search perspective, it may even be enough to change the price point you can look at.
And that’s a big deal if you haven’t found a home you love in your price range yet. It gives you a little more flexibility to find the one that’s right for you.
Either way, that’s a big win.
What’s Behind the Shift?
Three 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
- Inventory is increasing
All these help your bottom line and give you some breathing room if you’re buying a home. As Andy Walden, Head of Mortgage and Housing Market Research at ICE Mortgage Technology, says:
“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 . . .”
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.
For you, the savings could be the difference between “not yet” and “let’s go.”
Bottom Line
If you’ve been sitting on the sidelines, this is your cue to start looking again. So, contact your lender to see how much you can afford today and then connect with us to see what’s currently available that might suit your needs. You can find us at 508-388-1994 or msennott@todayrealestate.com.
We’re here to help…
Mari and Hank
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.
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