The $280 Monthly Difference Changing What Buyers Can Afford

If you put your move on hold because of high rates or rising prices, it might be time to take another look. According to First American, affordability has improved in 39 of the top 50 markets — marking the fifth straight month of progress.

Let’s break that down in real dollars so you can see what this shift could mean for you — and your next move.

Monthly payments are finally easing

According to the latest Redfin data, the average mortgage payment on a median-priced home is now $283 lower than it was just a few months ago — a clear sign that affordability is improving.

Those monthly savings add up fast — totaling nearly $3,400 over the course of a year.

Now, that might not completely change the affordability game overnight, but here’s the thing: when you’re building your homebuying budget, a few hundred dollars can make all the difference between feeling confident about your purchase and feeling stretched thin.

From a home-search standpoint, it could even expand what’s within reach. 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.”

That kind of flexibility matters. If you haven’t yet found a home that feels right in your price range, this shift could open the door to new options.

Either way, it’s a solid win for today’s buyers.

What’s Driving the Change?

Two major factors are finally working in buyers’ favor:

• Mortgage rates have eased from the highs we saw earlier this year.
• Home price growth is slowing across many markets.

Together, these shifts improve affordability and give buyers a little more breathing room. As Andy Walden, Head of Mortgage and Housing Market Research at ICE Mortgage Technology, explains:

“The recent pullback in rates has created real momentum for both homebuyers and current owners. Affordability is now at its highest point in more than two years.”

— Andy Walden, Head of Mortgage and Housing Market Research at ICE Mortgage Technology

Whether you’re buying your first home or upgrading to your next one, these shifts could make your move possible. Now’s the time to talk with a trusted agent or lender to see what your monthly payment could look like at today’s rates.

Sometimes, that savings is the difference between “not yet” and “let’s do this.”

Bottom Line

Affordability is on the rise in many markets, and that shift could completely change the math on your next move.

If you’ve been waiting for the right moment, this might be your signal to take another look. Connect with a local real estate professional or a trusted lender to review your options and run the numbers together. You might be surprised to see how much more buying power you have now compared to just a few months ago — and how much closer your next home could be than you think.