If you put your moving plans on hold because of high rates or prices, it might be a good idea to revisit your numbers. Affordability is getting better in 39 of the top 50 markets, according to First American. This marks the fifth month in a row that buying a home has become a bit more manageable.

Let’s put this into real dollars so you can clearly see how much of a difference it could make for you and your move.

 Monthly Payments Are Coming Down

One of the biggest signs of this change is in monthly mortgage payments. According to the latest data from Redfin, the monthly payment on a median-priced home has dropped by $283 compared to just a few months ago (see graph below).

Saving this much each month really adds up, reaching almost $3,400 by the end of the year.

This might not flip the affordability situation instantly, but here’s the thing: when you’re working out your homebuying budget, a few hundred dollars can make all the difference between feeling confident about the purchase and worrying that your finances are stretched too thin.

When you’re searching for a home, even a small change like this can shift the price range you’re able to consider. 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.”
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— Redfin

That’s really important if you haven’t come across a home you love within your budget yet. It gives you a bit more wiggle room to find the perfect fit for you.

Either way, that’s a great outcome.

What’s Behind the Shift?

There are two important things working in your favor right now:

• Mortgage rates have come down from where they were earlier this year.

• Home prices are starting to cool off in a lot of areas.

Both of these factors boost your finances and provide some extra space to breathe when you're in the process of buying a home. As Andy Walden, Head of Mortgage and Housing Market Research at ICE Mortgage Technology, explains:

““The recent pullback in rates has created a tailwind for both homebuyers and existing borrowers. We’re seeing affordability at a 2.5-year high . . .”
”

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

If you’re buying your first home or thinking about upgrading to a bigger place, the changes happening this year might just make it easier for you to make that move. Reach out to a trusted agent or lender to get a clear idea of what your monthly payments could be with today’s rates.

For you, saving money might be what changes “not yet” into “let’s do this.”

Bottom Line

Affordability is getting better in a lot of areas, which can change the way you think about moving.

If you’ve been holding back, now’s a great time to start exploring the market again. Let’s check out the local numbers together so you can get an idea of how much more buying power you might have compared to a few months ago.