This Fall, Buying Conditions Are Slowly Improving

Why Buyers Are Re-Entering the Market

Over the past few years, many buyers stepped back from the housing market. Home prices rose sharply, mortgage rates climbed, and affordability became a major challenge. But recently, conditions have begun to shift—and this fall may be a good time to take another look.

Mortgage Rates Have Eased

In May, the 30-year fixed mortgage rate hovered around 7%. Today, it’s closer to 6.3%. That may look like a small change, but the monthly savings are significant.

For example: on a $400,000 loan, dropping from 7% to 6.3% reduces the monthly payment by about $190, or more than $2,200 a year.

This decline has already encouraged buyers. The Mortgage Bankers Association (MBA) reports that purchase applications are up 20% compared to last year, reaching their most active level since 2022.

Slowing Home Price Growth

Runaway home price increases are also easing. First American’s chief economist Odeta Kushi projects that national home price growth will remain in the single digits for the rest of 2025, with some markets even seeing slight declines. For buyers, this creates a more predictable and budget-friendly environment.

Wages Are Rising Too

The Bureau of Labor Statistics (BLS) reports wages are rising about 4% annually. According to NAR’s Lawrence Yun, wage growth is now outpacing home price growth, gradually improving affordability and giving buyers more options.

Chicago & Illinois Market Context

In Chicago and across Illinois, similar trends are at play. While hot suburban areas still see quick sales, overall buyer activity is increasing thanks to lower rates and higher wages. For first-time buyers, programs from the Illinois Housing Development Authority (IHDA) that support down payments and closing costs make this fall even more promising.

Final Thoughts

According to Redfin, the typical monthly mortgage payment is now $290 lower than just a few months ago. With mortgage rates easing, price growth slowing, and wages rising, the affordability picture is improving.

📌 If you’ve been waiting on the sidelines, this fall is the right time to re-run the numbers and build a strategy. Prepared buyers are the first to capture opportunities.

👉 Contact: Chicago BDB | Hansang Chul

📞 773-717-2227 | 📧 ChicagoBDB@gmail.com