Affordability on the Horizon: What Buyers Should Know About Prices and Rates

When Bank of America recently surveyed would-be homebuyers, the results were clear: most people are waiting for one thing before they feel confident about making a move better affordability. That comes down to two factors: home prices and mortgage rates.

The good news? Both are showing signs of improvement. Here’s what that means for you.

Home Prices Are Cooling to a More Normal Pace

Over the last few years, home prices rose at record speed, leaving many buyers feeling priced out. For perspective, from 2020 to 2021, prices jumped by an astonishing 20% in just one year.

Today, things look very different. Experts now project single-digit price growth nationally this year—a much steadier and healthier pace.

Of course, trends vary by location. Some markets are still seeing increases, while others may see slight declines. But the overall takeaway is this: prices aren’t crashing, they’re simply moderating.

➡️ For buyers, that’s a big win. It means less pressure, more stability, and a budget you can plan around without worrying about rapid spikes in value.

Mortgage Rates Are Starting To Ease

At the same time, mortgage rates have come down from their recent highs. And while they may still fluctuate, the overall trend looks promising.

Lisa Sturtevant, Chief Economist at Bright MLS, explains it this way:

“Slower price growth coupled with a slight drop in mortgage rates will improve affordability and create a window for some buyers to get into the market.”

Even a small shift in rates can make a meaningful difference in your monthly payment. Right now, forecasts suggest rates will likely hold in the low-to-mid 6% range heading into 2026—much better than where they were not long ago. If the economy continues to stabilize, rates could dip further.

Why This Matters for Buyers

Affordability is still a challenge, but the housing market is adjusting in ways that favor buyers more than it did just months ago.

• Prices are slowing down.

• Rates are easing.

• Opportunities are opening up.

If you’ve been on the sidelines, these shifts could make the difference in finally moving forward.

Bottom Line

Affordability isn’t fully “fixed,” but there’s momentum in the right direction. With home prices moderating and mortgage rates easing, buyers have more breathing room than before.

If you’re thinking about making a move, connect with a local real estate agent who can walk you through the latest market conditions in your area—and help you take advantage of these changes.