Buying a Home: Easier Now, But Saving for a Down Payment Remains Tough

National Trends

• Home prices across the country are not rising as fast as before.
• Prices are almost the same as they were a year ago.
• Some cities, like Chicago and New York, have seen price increases.
• Others, like Tampa and Phoenix, have seen price drops.

Mortgage Rates Decline

• The average rate for a 30-year fixed mortgage is now around 6.19%.
• This is a big drop from the start of the year when rates were over 7%.
• Lower rates mean monthly savings for buyers.
• Example: A home around the national median price of $410,000 with a 20% down payment would save $200 per month compared to a year ago.

Down Payment Challenges

• Saving for a down payment is still difficult.
• It now takes about 7 years to save, down from 12 years in 2022.
• The personal savings rate is lower than in 2020, making saving harder.

Market Inventory and Buyer Response

• There are more homes for sale now than a year ago (12% increase).
• However, inventory is still lower than pre-pandemic levels.
• Pending home sales (signed contracts) rose in November.
• Higher than October and November of last year.
• Highest level in nearly three years.

Expert Insights

• Lower mortgage rates and wage growth are helping buyers.
• More inventory choices compared to last year are attracting buyers.