🏡 It Might Be Time to Recalculate Your Home-Buying Power

Many people have postponed moving because of high interest rates and rising home prices. But recent market shifts suggest it may be time to revisit the numbers.According to First American, 39 of the top 50 U.S. housing markets have seen improved affordability for five

consecutive months — a sign that buying conditions are gradually getting better.

Monthly Mortgage Payments Are Going Down

Redfin’s latest data shows that the average monthly mortgage payment on a median-priced home is now $283 lowerthan just a few months ago — saving buyers roughly $3,400 per year.

While that may sound modest, it can make a big difference in what you can afford.For example, a buyer with a $3,000 monthly budget could afford a $446,000 home in June. Today, that same buyer could purchase a home worth around $468,000 — a $22,000 increase in purchasing power.

What’s Driving This Change?

Two major factors are reshaping the market:

• Falling Mortgage Rates: After peaking earlier this year, rates have started to ease, reducing monthly costs for buyers.

• Slowing Home Price Growth: In some regions, price appreciation has cooled, making budgeting and planning easier.

According to ICE Mortgage Technology, today’s affordability levels are the strongest in over two and a half years, benefiting both buyers and current homeowners.

Opportunities for Buyers and Sellers

This shift creates openings on both sides of the market:

• For Buyers: Lower monthly payments mean lower barriers to entry, especially for first-time buyers.

• For Sellers: Improved affordability can bring more buyers back into the market, supporting a rebound in transaction activity.

However, these conditions won’t last forever. Buyers should use this window to recheck their budget, and sellers should align their listing strategies with the new wave of buyer interest.

Final Takeaway

Improving affordability means new opportunities are emerging. With lower monthly payments and stronger buying power, “it’s not the right time yet” might now become “this is the right time.”

If you want to understand how today’s rates and payment trends affect your plans, talk to a local expert and crunch the numbers — this shift could move your timeline forward.

Chicago Real Estate | Hansangcheol “ChicagoBDB”📞 773-717-2227 | ✉️ ChicagoBDB@gmail.com