3 Reasons Home Affordability Is Finally Loosening This Fall

If you’ve been watching the housing market and wondering whether now might be a smarter time to buy, there are some encouraging signs emerging this fall. After a stretch of rising prices and high mortgage rates, three key factors are aligning in a way that may bring a bit more breathing room to buyers.

1. Mortgage Rates Are Moving Downward

Earlier this year, mortgage rates hovered near 7%. As of late, they are closer to 6.3%. Though it may not sound like a huge shift, even a modest drop has a meaningful impact on monthly payments. For instance, on a $400,000 loan, moving from ~7% to ~6.3% could save a buyer about $190 per month, all else being equal.

Mortgage demand is already responding. Recent data shows that purchase applications have surged, reaching their highest levels since mid-2022. The drop in rates is giving buyers renewed confidence.

2. Home Price Growth Has Slowed

After years of steep appreciation, home price increases are moderating. Prices are still rising—but at a slower, low-single-digit pace. That softening gives buyers more predictability in their budgets, and in some markets, there’s even room to find small price dips.

Because price growth is less aggressive, buyers aren’t constantly trying to chase a moving target. It’s easier to plan, compare, and act without feeling like the market will spiral away overnight.

3. Wages Are Rising Faster Than Home Prices

One of the unsung heroes in the affordability story is income growth. Wages are currently rising at close to 4% annually, which is outpacing home price growth in many areas. In practical terms, if your paycheck is growing faster than the cost of homes, you gain a little more flexibility in what you can afford.

That small edge can make the difference between holding off and committing.

What This Means for Houston Buyers

Yes, affordability is still tight in many places—including Houston—but we’re inching in a more favorable direction. Between lower rates, more stable pricing, and rising incomes, the math is beginning to work more often.

Bottom Line

If you’ve been on the sidelines, this fall might be worth a second look. Let’s run the numbers together. I can help you:

• Re-evaluate your budget under current rates

• Explore Houston neighborhoods where you might find better value

• Strategize timing or loan options to maximize what you can afford

Want me to run a custom affordability analysis for your ideal Houston area? Just say the word—I’m ready when you are.

Disclaimer: The information provided in this blog post is based on the latest available data at the time of writing, which is subject to change. It is intended for informational purposes only and should not be considered as financial or investment advice.