Lately, there’s been a lot of talk about where housing affordability stands—and I see these questions come up with nearly every client conversation. Recent trends are pointing toward some disinflation in the market, as sellers and buyers aren’t always aligned on expectations. Sellers are more frequently offering concessions now, which can bring meaningful savings for those determined to achieve homeownership.
Still, the loan environment is putting pressure on affordability: benchmark Treasury yields are hovering around 5%, and the average 30-year mortgage rate has climbed just above the low-7% range. For the four weeks ending September 13, the median monthly mortgage payment landed near $2,600—about 3% higher than a year ago. This really shows how much financing costs are stretching budgets for buyers.
On top of that, the resale market remains tight here in Massachusetts and Rhode Island, with many homeowners holding onto their low-rate loans and keeping inventory limited. Sellers in many areas are still hoping for prices reminiscent of the pandemic surge. From what I’m seeing (and hearing from colleagues across the industry), this is less about a dramatic downturn and more about the market correcting toward stability. Strong homeowner equity and responsible lending are providing a solid foundation, and despite the challenges, there are still real opportunities for both buyers and sellers in today’s market.
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