A couple of new studies found that affordability is getting better for home buyers — in ways that signal “further relief” ahead as well as a changing definition of starter homes.
First American’s Home Price Index found that annual affordability improved 4.1% for buyers in August, the first time that’s happened since 2021. Not only did dropping mortgage rates help, but household income increased by 3.1%.
The third factor — home price appreciation — continued to climb, but at a slower rate and was not enough to offset the higher income and lower rates, said Mark Fleming, chief economist at First American.
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Author: Dave Gallagher
