A home buyer with a $3,000-per-month budget can now afford a home $40,000 more expensive than they could when rates were at their peak, according to a newly released report highlighting home buyers' increasing purchasing power. Mortgage rates have eased and it's helping prospective buyers afford more home for their money.
In fact, a $3,000 monthly mortgage payment will now buy a $453,000 home – where that same payment would only afford a $416,000 home as recently as October. That's great news for prospective buyers who may've been discouraged by last year's affordability challenges. But will improved affordability conditions lead to more competition for available homes and an increase in bidding wars?
It's possible. As rates moderate and buyers become more active this spring, competition will likely rise. That means attractive listings are more likely to receive multiple offers. Thankfully, the market won't return to the frenzied pace of 2021 but potential buyers should be ready, as lower rates will definitely inspire more Americans to pursue their dreams of buying a home this year.
[Source: DS News]
