Over the past couple of years, many hopeful homebuyers found themselves sidelined. With soaring home prices and steep mortgage rates, affordability felt out of reach for a lot of people. Maybe that was your story, too. If so, there's good news on the horizon: fall may be bringing the shift you've been waiting for.

Recent data from Redfin shows that the typical monthly mortgage payment has dropped by about $290 compared to just a few months ago (see graph below). That’s a meaningful change—and it could be the opening you need to make your move.

Here’s what’s behind this welcome development. The cost of purchasing a home mainly comes down to three key factors:

• Mortgage rates

• Home prices

• Wages

Right now, all three are trending in a positive direction for buyers. While buying a home still requires careful planning, it’s becoming more manageable than it was even a short time ago.

1. Mortgage Rates

After reaching around 7% earlier this year, mortgage rates have eased and are now hovering closer to 6.3% (see graph below). That might not seem like a big swing, but when it comes to your monthly payment, it makes a real difference.

For example, a $400,000 mortgage at a 6.3% rate instead of 7% could save you about $190 per month on interest alone. That kind of savings can be the deciding factor for many buyers. As Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), noted on September 10th:

“The downward rate movement spurred the strongest week of borrower demand since 2022 . . . Purchase applications increased to the highest level since July and continued to run more than 20 percent ahead of last year’s pace.”

2. Home Prices

After several years of steep increases, home price growth is finally slowing down. According to Odeta Kushi, Deputy Chief Economist at First American:

“National home price growth remains positive, but muted — low single digits — and we expect this trend to continue in the second half of the year.”

That’s great news for buyers. More moderate price increases mean you can better plan your budget, and in some local markets, you might even find prices that have dipped slightly—offering more value and opportunity than before.

3. Wages

Wages are on the rise, too. The Bureau of Labor Statistics (BLS) reports that average earnings are up around 4% annually. This is significant, especially when paired with the current state of home prices. Lawrence Yun,

Chief Economist at the National Association of Realtors (NAR), explains:

“Wage growth is now comfortably outpacing home price growth, and buyers have more choices.”

That means your paycheck is going further today than it did when home prices were rising faster than income. Even a small shift in this balance can make a big difference when you’re budgeting for a home.

What This Means for You

Thanks to declining mortgage rates, slower home price appreciation, and rising wages, the financial equation for buying a home is looking more favorable this fall. While affordability hasn’t completely turned around, the landscape is improving—and that could make now a great time to explore your options.

According to Redfin, monthly mortgage payments are already down by nearly $290 compared to earlier in the year. That’s a real opportunity to reassess your position and see if the numbers now work in your favor.

Bottom Line

If you’ve been wondering whether now’s the time to get back into the homebuying market, this fall may offer the best conditions we’ve seen in a while. Partner with a trusted professional to re-evaluate your financial plan, assess your budget, and determine whether this season is your time to transition from browsing listings to unlocking the front door of your new home.

For more information or to explore your options, reach out to Mike Panza and the team at Panza Home Group. They’re here to guide you every step of the way. You can contact them directly at: https://panzarealestate.com/team/mike-panza