Over the past couple of years, a lot of people have had a hard time buying a home. And while affordability is still tight, there are signs it's getting a little better and might keep improving throughout the rest of the year. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:“Housing affordability is improving ever so modestly, but it is moving in the right direction.”Here’s a look at the latest data on the three biggest factors affecting home affordability: mortgage rates, home prices, and wages. 1. Mortgage RatesMortgage rates have been volatile this year, bouncing around from the mid-6% to low 7% range. But there's some good news. Data from Freddie Mac shows rates have been trending down overall since May (see graph below):Mortgage rates have improved lately in part because of recent economic, employment, and inflation data. Moving forward, some rate volatility is to be expected. But if future economic data continues to show signs of cooling, experts say mortgage rates could keep going down. Even a small drop can help you out. When rates decline, it's easier to afford the home you want because your monthly payment will be lower. Just don’t expect them to go back down to 3%.2. Home PricesThe second big thing to think about is home prices. Nationally, they’re still going up this year, but not as fast as they did a couple of years ago. The graph below uses home price data from Case-Shiller to illustrate that point:If you're thinking about buying a home, slower price growth is good news. Home prices went up a lot during the pandemic, making it hard for many people to buy. Now, with prices rising more slowly, buying a home may feel less out of reach. As Odeta Kushi, Deputy Chief Economist at First American, says: “While housing affordability is low for potential first-time home buyers, slowing price appreciation and lower mortgage rates could help – so the dream of homeownership isn’t boarded up just yet.”3. WagesAnother factor helping with affordability is rising wages. The graph below uses data from the Bureau of Labor Statistics (BLS) to show how wages have increased over time:Look at the blue dotted line. It shows how wages usually go up in a typical year. On the right side of the graph, you'll see wages are rising even faster than normal right now – that's the green line.This helps you because if your income increases, it's easier to afford a home. That’s because you won't have to spend as much of your paycheck on your monthly mortgage payment.Bottom LineWhen you put all these factors together, you see mortgage rates are trending down, home prices are rising more slowly, and wages are going up faster than usual. Though affordability is still a challenge, these trends are early signs things might be starting to improve.

When is your time? Deciding when it is the right time to move can be a daunting task. Whether you are a buyer or a seller, there are several factors to consider before making the big decision. In this blog, we will discuss how to determine the right time for you and whether it is best to buy or sell when rates are falling. For buyers, the decision to move often stems from various reasons such as outgrowing their current home, relocating for work, or simply wanting a change of scenery. Determining when it is the right time depends on personal circumstances and preferences. Some buyers might be driven by the availability of properties that fit their needs, while others might be motivated by favorable market conditions, such as low-interest rates or reduced housing prices. On the other hand, sellers may consider moving if they have a desire to upgrade or downsize, or if they are looking to capitalize on the current market conditions. Sellers often gauge the right time based on factors like the state of the local real estate market, the demand for properties like theirs, and their financial goals. It is essential to consider these elements before deciding to list your property. One critical aspect that influences the decision-making process for both buyers and sellers is the market update. Staying informed about the current state of the real estate market is crucial for making an educated decision. By keeping an eye on trends, you can determine whether the market favors buyers or sellers. For instance, if the market is experiencing low inventory levels and high demand, it may be a seller's market, leading to higher prices and potentially quicker sales. Conversely, in a buyer's market with ample inventory and less demand, buyers can have more negotiating power and potentially find better deals. Now, let's address the question: should you buy or sell when rates are falling? Falling interest rates typically make borrowing more affordable, which can be advantageous for buyers. Lower rates translate into lower monthly mortgage payments and potentially allow for a larger loan amount. For sellers, however, falling rates might not necessarily have a significant impact on their decision to sell. Other factors such as market conditions, personal circumstances, and financial goals play a more prominent role. In conclusion, deciding when it is the right time to move depends on individual circumstances and preferences. Buyers should consider factors like availability and market conditions, while sellers should assess the state of the local real estate market and their financial goals. Lastly, falling interest rates can be beneficial for buyers, but sellers should focus more on other elements when making their decision. Ultimately, consulting with a knowledgeable real estate agent can provide invaluable guidance in navigating these complex decisions.