The $280 Shift in Affordability Every Homebuyer Should Know

This kind of monthly savings adds up fast, and totals nearly $3,400 over the course of a year.

While this isn’t enough to completely change the affordability game overnight, think about it this way. When you’re putting together a homebuying budget, a few hundred dollars could be the difference between being comfortable buying and feeling like money’s a bit tight.

And from a home-search perspective, it could even be enough to change the price point you can look at. According to Redfin:

“A borrower with a $3,000 monthly budget can now afford a $468,000 home, about $22,000 more than in June."

And that’s a big deal if you haven’t found a home you love in your price range yet. It gives you a little more flexibility to find the one that’s right for you.

Either way, that’s a big win.

Here in Southern California, affordability shifts hit closer to home than national headlines might suggest. The median sales price for a single-family home in our region is around $869,250, while in the Inland Empire, it’s closer to $591,010. That means even small changes in monthly mortgage payments—like the recent $283 drop—can make a noticeable difference in what local buyers can afford. In real terms, that extra room in your budget could expand your search to a new neighborhood, or even help you qualify for a home that was just out of reach a few months ago.

With mortgage rates easing and home price growth stabilizing, buyers from Pasadena to Rancho Cucamonga are starting to see new opportunities open up. These shifts may not transform affordability overnight, but in a market as competitive as SoCal’s, a few hundred dollars in savings can be the difference between staying on the sidelines and finally getting the keys to your new home.

Two key factors are working in your favor right now:

• Mortgage rates have eased from their high earlier this year

• Home price growth is slowing in many markets

Both of those things help your bottom line and give you a bit of breathing room if you’re buying a home. As Andy Walden, Head of Mortgage and Housing Market Research at ICE Mortgage Technology, says:

“The recent pullback in rates has created a tailwind for both homebuyers and existing borrowers. We’re seeing affordability at a 2.5-year high . . .”

Whether you’re a first-time homebuyer or someone looking to move-up into a bigger house, the shifts happening this year could make your move possible. Connect with a trusted agent or lender to see what your monthly payment would look like at today’s rates.

For you, the savings could be the difference between “not yet” and “let’s go.”

Affordability is improving in many markets. And that resets the math on your move.

If you’ve been sitting on the sidelines, this is your cue to start looking again. Let’s run the local numbers together so you can get a rough estimate of how much more buying power you may have than you did just a few months ago.