The Full Truth About Affordability Right Now — The Good and the Bad.

Let me be straight with you — because if you're thinking about making a move, you deserve an honest conversation, not a filtered version of reality designed to push you toward a decision.

So here it is. The full picture. The good and the bad. Because affordability right now is more nuanced than either the doom-and-gloom headlines or the overly optimistic real estate content you're seeing online.

The Bad News First: Rates Have Been Climbing Again

After more than a year of mortgage rates trending downward, they've started moving back up. And if you're a buyer, that's frustrating to watch.

Here's why it's happening. Uncertainty is the enemy of mortgage rates — and right now, there's no shortage of it. Lingering global tensions, ongoing conflict in the Middle East, and inflation that keeps refusing to fully cool off are all putting upward pressure on bond yields, which directly affects mortgage rates.

As Colin Robertson, Founder of The Truth About Mortgage, puts it plainly: you can't have $100-a-barrel oil without expecting inflation to rise — and that translates directly to higher bond yields and mortgage rates.

That's a real shift in a short period of time. And it's probably making you wonder — should I just wait this out?

Here's the honest answer: it's possible rates come back down when geopolitical tensions ease and inflation cools. But experts broadly agree that even in an improved environment, rates are unlikely to fall dramatically — probably landing in the low-to-mid 6s at best. That's the realistic ceiling on rate relief.

So the question becomes: how long do you want to put your life on hold waiting for a number that may not move as much as you're hoping?

Now the Good News: Wages Are Growing Faster Than Home Prices

You've heard the cost-of-living headlines. Inflation is making everything more expensive. Paychecks aren't keeping up. It's a real concern — and for a lot of people, it's a real experience.

But here's something that's genuinely not getting enough attention:

Wages have actually been growing faster than home prices.

According to data from the Federal Reserve Bank of Atlanta and Redfin:

• Wages have been increasing at around 4% year-over-year

• Home price growth is running closer to 2% year-over-year

That gap matters more than most buyers realize. When your income rises faster than home prices, your purchasing power quietly improves even when rates aren't cooperating. The affordability challenge doesn't disappear — but it erodes gradually over time. And right now, that trend is working in buyers' favor.

And Home Prices Have Been Remarkably Stable

Here's the other piece of the affordability picture that gets lost in the noise.

Look at that chart. No dramatic price spike. No crash. Just slow, steady movement that gives buyers something they haven't had in years: predictability.

Part of what's keeping prices stable is inventory. Buyers finally have more choices than they did during the pandemic frenzy — and more choices mean less competition, more negotiating room, and more time to make a thoughtful decision instead of panic-buying whatever's available before someone else grabs it.

In Rancho Cucamonga and the Inland Empire, that dynamic is particularly visible. More inventory, steadier prices, and motivated sellers have created a more balanced environment for buyers who are prepared and patient. In Pasadena and LA County, price stability means you're not racing against a market that's running away from you — which gives buyers the space to actually find the right home rather than settling.

What This All Adds Up To

Let's put the three pieces together honestly:

Rates are up — that's real, and it affects your monthly payment. No sugarcoating that.

Wages are outpacing home prices — that's quietly improving your buying power month by month, even when it doesn't feel like it.

Home prices are stable — you're not losing ground while you take time to make a careful decision, and you're not buying at a peak.

The full picture of affordability isn't as simple as "rates are high, so wait." It's a combination of factors — and right now, two of the three are actually moving in your direction.

Does that make buying easy? No. Does it make buying impossible? Also no.

What it makes buying is a decision that deserves a real conversation about your specific numbers — not a blanket response based on one factor in isolation.

Bold LA Key Takeaway

Affordability is a real challenge right now — but the complete picture is more nuanced than the headlines suggest. Rates are elevated, yes. But wages are growing faster than home prices, prices themselves are stable, and buyers have more leverage and more choices than they've had in years.

The right question isn't "is affordability perfect?" It's "do the numbers work for my situation right now?"

Let's find out together. I'll run the real numbers for your specific scenario — no pressure, no spin — so you can make a decision based on facts, not headlines.

That wraps up today's blog — appreciate you stopping by. And as always, if you want it to sell, call Terrell… and if you want to buy, I'm still the guy.