"The company's October 2025 Mortgage Monitor report found that 30-year mortgage rates averaged 6.26% in mid-September, lowering the monthly principal and interest payment on an average-priced home to $2,148. That equals 30% of the median U.S. household income, down from 32% earlier this summer and well below the 35% peak in late 2023. Markets now expect 30-year mortgage rates to hover near 6.25% by year's end and 6.15% by early 2026, giving room for improved homebuyer affordability and buyer loan qualification."
"The recent pullback in rates has created a tailwind for both homebuyers and existing borrowers, said Andy Walden, head of mortgage and housing market research at ICE. We're seeing affordability at a 2.5-year high, which is beginning to bolster purchase demand, while creating more opportunities for homeowners to lower their monthly payments with a rate-and-term refinance loan. While affordability has improved, the report noted sharp disparities across markets."
Home affordability in the United States improved to its best level in two and a half years as 30-year mortgage rates averaged about 6.26% in mid-September, reducing the monthly principal and interest payment on an average-priced home to $2,148, or 30% of median household income. A Federal Reserve quarter-point cut on Sept. 17, 2025, pushed the 10-year Treasury yield lower and helped narrow spreads, with markets projecting rates near 6.25% by year-end and 6.15% by early 2026. The rate pullback is bolstering purchase demand and creating refinance opportunities, though sharp affordability disparities persist across regions, with many Midwest markets nearing long-term averages while coastal cities like Los Angeles remain stretched.
Read at www.housingwire.com
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