If you’ve put your moving plans on hold due to high rates or prices, it may finally be time to take another look at your numbers. Affordability yes improve in 39 of the top 50 markets, according to First American. And that’s the 5th month in a row where buying a house has become a little easier.
Let’s break this down into real dollars so you can see the difference this can make for you (and your move).
Monthly payments are going down
One of the clearest signs of this shift is the monthly payments. The latest data from Redfin shows Mortgage payments for a median-priced home are now $283 lower than they were a few months ago (see graph below):
These types of monthly savings quickly add up and amount to almost $3,400 over the course of a year.
While this isn’t enough to completely change the affordability game overnight, think about it this way. When putting together a budget for a home purchase, a few hundred dollars can make the difference between buying comfortably and feeling like money is a little tight.
And from a home hunter’s perspective, it may even be enough to change the price point you can look at. According to Redfin:
“A borrower with a monthly budget of $3,000 can now afford a $468,000 home, about $22,000 more than in June.”
And that’s bad if you haven’t yet found a home in your price range that you like. It gives you a little more flexibility to find the one that suits you.
Either way, it’s a big win.
What’s behind the shift?
Two important factors are currently working in your favor:
- Mortgage interest rates have fallen compared to the high level of earlier this year
- Home price growth is slowing in many markets
Both of these things help your bottom line and give you some breathing room when you buy a home. Such as Andy Walden, head of mortgage and housing market research bee ICE mortgage technology, say:
“The recent rate cut has created tailwinds for both homebuyers and existing borrowers. We see affordability at the highest level in 2.5 years. . .”
Whether you’re a first-time home buyer or someone looking to move into a larger home, the shifts happening this year could make your move possible. Contact a trusted agent or lender to see what your monthly payment would look like at current rates.
For you, the savings could be the difference between ‘not yet’ and ‘let’s go’.
In short
Affordability is improving in many markets. And that resets the math as you go.
If you’ve been sitting on the sidelines, this is the signal to start watching again. Contact a local agent or trusted lender to crunch the numbers so you can get a rough estimate of how much more purchasing power you may have than you did a few months ago.
#Shift #Affordability #Home #Buyer