Exciting News for Homebuyers: Affordability is Improving!

Over the past few years, buying a home has been tough, but things are looking up! While affordability is still a challenge, signs point to improvements ahead. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), shares some good news:

“Housing affordability is improving ever so modestly, but it is moving in the right direction.”

Let’s break down the three key factors making a difference:

1. Mortgage Rates 📉 Mortgage rates have been up and down this year, ranging from the mid-6% to low 7%. But there’s good news! Since May, rates have been trending down. This is partly due to positive economic data. While some volatility is expected, if the economy continues to cool, rates could keep dropping, making it easier to afford your dream home. Just don’t expect them to drop to 3% again.

2. Home Prices 🏠 Home prices are still rising, but not as quickly as before. Slower price growth is great news if you’re looking to buy. With the frenzy of pandemic price hikes easing, homeownership is becoming more attainable. Odeta Kushi, Deputy Chief Economist at First American, notes:

“While housing affordability is low for potential first-time home buyers, slowing price appreciation and lower mortgage rates could help – so the dream of homeownership isn’t boarded up just yet.”

3. Wages 💸 Wages are on the rise! The latest data from the Bureau of Labor Statistics (BLS) shows that wages are increasing faster than usual. This means more income in your pocket, making it easier to manage your monthly mortgage payments.

Bottom Line ✨ With mortgage rates trending down, home prices rising more slowly, and wages going up, we’re seeing early signs of improved affordability. If you’ve been holding off on buying a home, now might be the perfect time to jump in!

🏡 Ready to explore your options? Contact Krista Klause and your trusted real estate team with any questions—we're here to help you navigate the market! 📞👩‍💼