Ifyou’reoneofthethousandsofhomebuyerswaitingforratestofall, youshouldknowit’salreadyhappening.Andthisyear,theycrossedan importantmilestone.They’rethelowestthey’vebeenin3.5years.
HowLowerRatesHelpYou
Amortgageratedoesn’tjustaffecttheinterestyouenduppayingonyourhomeloan.Itshapes yourentirebuyingexperience.
Whenrateswereuparound7%justoverayearago,alotofbuyersfeltpricedout.Payments werehigher.Budgetsfelttighter.Affordabilitywasabiggerchallenge.That’sespeciallytruefor first-timehomebuyers,whofeltthebiggestpinch.
Butaccordingtoindustryexperts,that’sstartingtochangenowthatratesareslowlyinching down.Let’sbreakdownwhy.Ataratearound6%orbelow,you’llsee:
•Lowermonthlypayments.Redfinshowsmortgagepaymentsonamedian-priced homearenowroughly$300lowerthantheywerelastSpring
•Morebuyingpower,thankstotheextrabreathingroominyourbudget
Thiskindofmonthlysavingsaddsupfast,andtotalsover$3,300overthecourseofayear.
Whilethisisn’tenoughtocompletelychangetheaffordabilitygameovernight,thinkaboutitthis way.Youcannowmakeastrongeroffer,purchaseinadifferentlocation,orbuyahomethat checksmoreofyourboxes.Andthatfeelslikeabigshiftcomparedtowhenrateswereat7%.
ThisOpenstheDoorfor550,000Buyers
Todrivehomejusthowmuchthishelpspotentialhomebuyerslikeyou,consider thisresearchfromtheNationalAssociationofRealtors(NAR).Itshowsthatwhenmortgagerates sitaroundthislevel,millionsmorehouseholdscanaffordahome.Whenratesareat6%or below:
•5.5millionmorehouseholdscanaffordthemedian-pricedhome
•Androughly550,000ofthosepeoplewilllikelybuyahomewithin12to18months
That’snotjustspeculation.That’spent-updemandfinallygettingthegreenlightthey’vebeen waitingfor.Youhavethechancerightnowtogetaheadandbuybeforemorepeoplenoticethe gamehasjustchanged.Becausethemathisalreadyworkinginyourfavor.
AnImportantCallOut
Mortgageratesdon’toperateinavacuum.Homeprices,localinventory,propertytaxes,home insurance,andyourpersonalfinancesstillmatter.Andarateinthisterritorydoesn’tmeanevery homesuddenlyworksforeverybuyer.
That’swhygettingpre-approvedandrunningyournumberswithatrustedlenderiskey. Still,thisrateenvironmentputsmorebuyersinplaythanwe’veseeninyears.So,ifbuyingdidn’t workforyoubefore,it’sworthtakinganotherlook.
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Affordabilityisimproving.Andthatmayresetthemathonyourmove.
Let’srunthenumberstogethersoyoucangetaroughestimateofhowmuchmorebuying poweryoumayhavethanyoudidjustafewmonthsago.
HowChangingMortgageRates AffectYourFutureMonthlyPayment
Expertssayrateswillstayprettymuchwheretheyarenow–butsome volatilityistobeexpected.So,youshouldn'ttrytotimethemarket.It'sbetter tofocusonhowanychangeimpactsyourfuturemortgagepayment.
AffordabilityIsMoving intheRightDirection
There’sfinallygoodnewsforanyonewho’sbeenpricedoutorsittingonthe sidelines.Buyingahomeisgettingmoreaffordable.Whilethatdoesn’tmean everyonecansuddenlyaffordahome,theimprovementwe’reseeingmatters.
Oneofthebestwaystoseetheaffordabilityshiftisbylookingathowmuchofahousehold’s incomeittakestobuyahome.AccordingtoZillow,housingistypicallyconsideredaffordable whenittakes30%orlessofyourmonthlyincometocoveryourexpenses.Thatincludesyour mortgagepayment,taxes,insurance,andbasicmaintenance.
Forthepastfewyears,themathwaswellabovethatthreshold,anditmadebuyingahome unachievableformany.Butnow,it’stakinglessofatypicalhousehold’sincometobuya homethanitdidjustafewyearsago(seegraphbelow):
Now,affordabilityisstilltight.Butthingsaretrendingintherightdirection.Andsomemarkets mayevenfallbackunderthat30%thresholdbytheendofthisyear.
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Theimprovementisn’thappeningeverywhereatthesamespeed.Ifyouwanttoseehow thesetrendsshowupinourarea,let’stalk.
Affordabilitywon’tsnapbackovernight,but likeashipfinallycatchingasteadytailwind, it’snowsailingintherightdirection.
MarkFleming ChiefEconomist,FirstAmerican
InventoryIsMaking aComebackin2026
Afteralongstretchwherebuyerswerecompetingfortoofewhomes, inventoryhasmadeacomebackoverthepastyear.Anddepending onwhereyoulive,that’sopeningupyouroptionsinameaningfulway.
AccordingtoRealtor.com,thenumberofhomesavailableforsalehasclimbedtoits highestlevelsince2020.Andthat’sanotherbigmilestoneforthemarket.Gettingbackto pre-pandemiclevelssignalsaslowandsteadyreturntowhat’stypical(seegraphbelow):
InventoryIsMakingaComeback ActiveListings,JanuaryofEachYear
1,154,1391,043,9681,110,654 951,699
616,869665,603
829,376912,696
Now,it’sworthnoting,nationallythemarketisn’tthereyet–andhavingmoreinventory won’tsuddenly“fix”everything.Butthegrowththemarkethasseenlatelystillchangeshow competitiveitfeels.
•Whentherearemorehomesforsale,buyersgaintime,options,andleverage.
•Whentherearen’t,thepressurerampsupquickly.
Intheyearssince2020,therehaven’tbeenenoughhomesforsale,andthat’smadethe marketfeeldifferent.Rushed.Stressful.Intimidating.
Butnowit’sfinallygettingbetter.
AGrowingPortionoftheCountryIsGettingBacktoNormal
Dependingonwhereyoulive,inventorygrowthisgoingtovary.Someplacesare bouncingbackfasterthanothers.
AccordingtoLanceLambert,Co-FounderofResiClub,inJanuary2025,justalittleoverone yearago,only41ofthe200largestmetroswerebacktonormalinventory.
Butaroundtheendofyear,almosthalf(90)ofthelargest200metroareaswerebackator abovetypicallevels.That’sabigimprovementinroughlyayear.Andit’snotdoneyet.
InventoryIsExpectedToKeepGrowing
Lookingahead,forecastssaythenumberofhomesforsalecouldriseanother10%thisyear, whichmeansevenmoremarketsshouldjointhelistofplaceswheresupplyhasrebounded. Here’sagraphthatshowswhatanextra10%woulddoforthemarketthisyear.Youcansee thatprojectedgrowth(showninthedottedline)hitsinventorylevelsseenin2017-2019 byroughlythisfall(thegraylines).Thatmeansthingsmaybenormalbyendofyear,nationally: IftheNumberofHomesforSaleGoesUpAnother10% in2026,InventoryWillBeCloseto2017-2019Levels
Thatchangesyourhomesearchina goodway.AsHannahJones,Senior EconomicResearchAnalystat Realtor.com,putsit:
“...housingmarketconditionsare graduallyrebalancingafterseveralyears ofextremeselleradvantage.
Buyersarebeginningtoseemore optionsandmodestnegotiating powerasinventoryimproves...”
Inotherwords,themarketisstartingto workwithbuyersagain—not againstthem.
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Inventoryisn’tfullybacktonormal everywhere.Butit’smovinginthe rightdirection.And,insome areas,it’salreadythere.
Ifyou’vebeenwaitingforamoment whenyouhaveoptions,andalittle breathingroom,thisisthestrongest setupbuyershaveseeninalong time.
Ifyouwanttoknowwhat’shappening inourlocalmarket,let’stalk.
LawrenceYun ChiefEconomist,NAR
WhyaNewlyBuiltHomeMight BeaSmartMoveRightNow
Areyoulookingforbetterprices?Youmightfinditinanunexpectedplace:anewlybuilt home.That'swhymorebuyersarechoosingnewconstruction.It'snotjustaboutgettingthe latesttechnologyormodernfloorplans.It’sbecausetheymaybeabletogetabetterdeal.
Therearemorebrand-newhomesavailablerightnowthantherehasbeeninyears.Andasa buyer,thatcanhelpyouintwobigways.Itgivesyoumoreoptions,anditmotivatesbuildersto selltheirinventorybeforetheybuildmore.That’sexactlywhysomanyhomebuildersareoffering seriousincentiveslikepricecuts,mortgageratebuydowns,andhelpwithclosingcosts.
Andperkslikethatarehardtoignore.That'swhy,in2025,newhomesaleshittheirhighestlevel inover3years.Buyerssawtheopportunity,andtheyjumpedonit.Maybeyoushoulddo thesame.
BuilderIncentivesAreatanAll-TimeHigh
DatafromtheNationalAssociationofHomeBuilders(NAHB)shows65%ofbuildersoffered specialperkstobuyers.
That’sthehighestpercentagein5years.Here’s aquickrundownofsomeofthemostcommon ones:
•HelpwithClosingCosts:Somebuilders arecoveringthousandsofdollarsinfeesto reducetheupfrontcostofbuying.
•ExtraUpgrades:Thinkpremiumfinishes, appliancepackages,anddesignerfeatures, oftenaddedatnoextracost.
•MortgageRateBuydowns:Thisiswhen thebuilderpaystogetyoualower mortgagerate,whichreducesyourmonthly payments.Rightnow,buyerscangetarate roughlyahalfapercentagepointloweron newhomesthanbuyersonexistinghomes, thankstobuilderincentives. ofbuildersareoffering incentivestobuyers
Source:NAHB 65%
Andyoudon’thavetobeluckytoseethese typesofperks.Thevastmajorityofbuilders areofferingadvantagesliketheserightnow.
BuildersAreCuttingPrices
Anothercommonincentivethey’reofferingis adjustingtheprice.AccordingtoNAHB,36%of buildersaredoingpricecuts.Andthetypicalcut is6%.
ofbuilders cutprices
So,buildersmaybemorewillingtonegotiate onpricethanyou’dexpect.Andthatmeans yourdollarmaygofurtherifyoubuyanewly builthome.
Leanonyouragenttoseewhat’savailableand whatincentivesbuildersareofferinginand aroundyourarea.
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Withmostbuildersofferinggenerousincentivesandawiderselectionofnewhomesfor sale,buyersmaybelookingatoneofthebesttimesinyearstobuyanewbuild.
Let’sconnectifyouwanttoknowwhichcommunities,builders,andincentivesofferthemost valueinourmarkettoday.Andknowthis:havingyourownagent(notthebuilder’s representative)makesthesaleandnegotiationprocessmucheasierforyou.
Ifyoucouldhaveanall-newhomeforlessthanyoumayexpect,wouldyoube interested?
Source:NAHB
Ifyou’retornonwhetheryouwanttofocusyoursearchonnewconstruction homesorexistingones,herearesomedifferencesthatcouldhelpyoudecide.
Awidervariety offloorplans andstyles
Detailsthatadd charmand character
Abilitytocustomize certainfeatures duringthebuild
Won’tneedrepairs orrenovationwork upfront
Moremature landscapingand neighborhoods
Energyefficient featuresmay bestandard
Bothoptionshavetheirperks;itjustdependsonwhatmattersmosttoyou.
Ifyouhavequestionsaboutwhat’savailableinourarea,let’sconnect.
TheTopTwoBuyer MistakesToday
Intoday’smarket,you’llwanttobesureyou haveadvicefromateamofprofessionals. Herearethetoptwomistakesotherbuyers aremakingrightnow,andhowyouragentor lendercanhelpyouavoideachone.
1.PuttingOffPre-Approval
Aspartofthehomebuyingprocess,a lenderwilllookatyourfinancestofigure outwhatthey’rewillingtoletyouborrow foryourmortgage.Thiswillhelpyou reallywrapyourheadaroundthe financialsideofthingsbeforeyoustart lookingathomes.
Whilehousehuntingcanbealotmore funthantalkingaboutfinances,youdon’t wanttodothisoutoforder.
Makesureyougetyourpre-approval firstbeforeyougohousehunting.As CNETexplains:
“Ifyouwaittogetpreapproveduntilthe lastminute,youmightbescramblingto contactalenderandmisstheopportunity toputabidonahome.”
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2.BuyingMoreHouseThanYou CanAfford
Withtoday’smortgageratesandhome prices,it’sevenmoreimportanttoavoid stretchingyourbudgettoofar.Thisis especiallytruebecauseotherhousing expenseslikehomeinsuranceandtaxes areontherise.
Besuretofactortheseexpensesintoyour budgetsoyoudon’toverextend.Bankrate offersthisadvice:
“Focusonwhatmonthlypaymentyoucan affordratherthanfixatingonthemaximum loanamountyouqualifyfor.Justbecause youcanqualifyfora$300,000loan doesn’tmeanyoucancomfortably handlethemonthlypaymentsthat comewithitalongwithyourother financialobligations.”
Thegoodnewsis,youdon’thavetodealwithanyoftheseheadachesifyouhavethe rightpartnerbyyourside.Let’sconnectsoyouhaveaprowhocanhelpyouavoidthese costlymistakes.
ThingsToAvoid AfterApplying foraMortgage
Aspartofthehomebuying process,oncealenderhas reviewedyourfinances,youwant tobeasconsistentaspossible.
Don’tchangebankaccounts.
Don’tdepositcash intoyouraccounts beforespeaking withyourbank orlender.
Don’tapplyfornewcreditor closeanycreditaccounts.
Don’tco-signother loansforanyone.
Don’tmakeany largepurchases.
Thebestadvice?Onceyou’vesubmittedyourmortgageapplication, alwaystalktoyourlenderbeforedoinganythingfinancialinnature.
5ReasonsYouNeedanAgent WhenBuyingaHome
Whenitcomestobuyingahome,expertadvicefromatrustedrealestateagentispriceless, nowmorethanever.Andhere’swhy.Anagentdoesalotmorethanyoumayrealize.
Youragentisthepersonwhowillguideyouthrougheverystepwhenbuyingahome,andthey’ll lookoutforyourbestinterestsalongtheway.Theysmoothoutacomplexprocessandtake awaythebulkofthestressofwhat’slikelyyourlargestpurchaseever.Andthat’sexactlywhat youwantanddeserve.
ThisisatleastpartofthereasonwhyasurveyfromBrightMLSfoundanoverwhelmingmajority ofpeopleagreeanagentisakeypartofthehomebuyingprocess(seevisualbelow):
Ofrespondentsagree"Itwouldbe
Ofrespondentsbelieve "Arealestateagentorbroker isanessential,trusted advisorforahomebuyer."
Togetabetterideaofjustafewofthetopwaysagentsaddvalue,checkoutthislist.
•DeliverIndustryExpertise:Therightagent–theprofessional–willcoachyou througheverythingfromstarttofinish.Withprofessionaltrainingandexpertise, agentsknowtheinsandoutsofthebuyingprocess.Andintoday’scomplexmarket, thewayrealestatetransactionsareexecutedisconstantlychanging,sohaving expertadviceonyoursideisessential.
•ProvideExpertLocalKnowledge:Inaworldthat’spoweredbydata,agreat agentcanclarifywhatitallmeans,separatefactfromfiction,andhelpyou understand howcurrentmarkettrendsapplytoyouruniquesearch.Fromhowquicklyhomesare sellingtothelatestlistingsyoudon’twanttomiss,theycanexplainwhat’shappening inyourspecificlocalmarketsoyoucanmakeaconfidentdecision.
•ExplainPricingandMarketValue:Agentshelpyouunderstandthelatestpricing trendsinyourarea.What’sahomevaluedatinyourmarket?Whatshouldyouthink aboutwhenmakinganoffer?Isthisahousethatmighthaveissuesyoucan’tseeon thesurface?Noonewantstooverpay,sohavinganexpertwhoreallygetstrue marketvalueforindividualneighborhoodsispriceless.Anofferthat’sbothfairand competitiveintoday’shousingmarketisessential,andalocalexpertknowshowto helpyouhitthemark.
•ReviewContractsandFinePrint:Inafast-movingandheavilyregulatedprocess, agentshelpyoumakesenseofthenecessarydisclosuresanddocuments,soyou knowwhatyou’resigning.Havingaprofessionalthat’strainedtoexplainthedetails couldmakeorbreakyourtransactionandiscertainlysomethingyoudon’twanttotry tofigureoutonyourown.
•BringNegotiationExpertise:Fromoffertocounterofferandinspectiontoclosing, therearealotofstakeholdersinvolvedinarealestatetransaction.Havingsomeone onyoursidewhoknowsyouandtheprocessmakesaworldofdifference.Anagent willadvocateforyouastheyworkwitheachparty.It’sabigdeal,andyouneeda partnerateveryturntolandthebestpossibleoutcome.
Bottom73%fasterLine
Realestateagentsarespecialists,educators,andnegotiators.Theyadjusttomarket changesandkeepyouinformed.Andkeepinmind,everytimeyoumakeabigdecisionin yourlife,especiallyafinancialone,youneedanexpertonyourside.Expertadvicefroma trustedprofessionalispriceless.
MischaFisher ChiefEconomist,Zillow
Doyouhavequestionsabout somethingyoureadhereorabout buyingahomeingeneral?Don’t hesitatetoreachout.
Whetherit’shousingmarket-related, orsomethingaboutyourspecific situation,I’vehelpedotherbuyers findsuccess–andIcanhelpyoutoo.
