Is it really more affordable to buy a home right now than it was in recent years?
Yes - current data shows home affordability is the best it’s been in more than two-and-a-half years, thanks to falling mortgage rates and stabilizing home prices.
The Waiting Game: Why Some Buyers Are Holding Back
You might be holding off on buying a home, thinking affordability will improve down the road. You're not alone - many buyers are sitting on the sidelines, watching the market closely.
But here’s what many don’t realize: affordability is already improving, and the data backs it up.
According to ICE Mortgage Technology’s latest Mortgage Monitor Report, housing affordability reached its most favorable point in over two-and-a-half years as of October 2025. That’s a major shift - and it could mean opportunity for you.
What’s Driving the Shift in Affordability?
Two key factors are making homes more affordable today:
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Mortgage Rates Are Trending Down
After peaking in recent years, rates have been gradually declining. Lower rates directly reduce your monthly mortgage payment, which can significantly affect your overall affordability. -
Home Prices Are Moderating
While prices aren’t dropping drastically, they’ve leveled out in many markets - including here in Santa Barbara. That means less pressure on your budget and more room to negotiate.
This doesn’t mean the affordability challenge is solved - but it's far better than it was just a year or two ago. And that shift could be the advantage you need.
How This Affects Your Bottom Line
Every quarter-point drop in mortgage rates increases your buying power. For many buyers, that means moving from “maybe someday” to “I can actually afford this now.”
Plus, fewer buyers in the market means less competition. You could find yourself with better terms, more choices and less pressure to overbid.
Don’t Miss This Window
Markets change - and so do interest rates. If you wait for the “perfect” moment, you could miss today’s unique opportunity. Right now, the data shows you have more power in the market than you might think.
If you’ve been waiting for home affordability to improve, good news: it already has. With mortgage rates trending down and prices holding steady, your opportunity to buy may be better now than at any point in the last couple of years.
Want to explore what’s possible in today’s market?
Schedule a consultation with Dianne & Brianna Johnson of Village Properties Real Estate Advisors in Santa Barbara, CA. We’ll help you review your options and make a confident move in a changing market.
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