Affordability has always been a big question for homebuyers, but in today’s market of higher mortgage rates and changing home prices, it’s become even more pressing. Many buyers are discovering that homes once within reach may now stretch their budgets — but that doesn’t mean homeownership is out of the picture. With smart planning and a few adjustments, you may still afford more than you think.

1. Understand How Rates Shape Your Buying Power

Your mortgage rate has a huge impact on your monthly payment. Even a small difference — say, 6.5% versus 6.0% — can change what you qualify for by tens of thousands of dollars. Watching rate trends and working with your lender to explore different loan options is key to maximizing affordability.

2. Explore Loan Term Options

Choosing a different loan term (such as 30-year vs. 15-year) or looking at programs with slightly different structures can expand what you can afford. For example, a 30-year term keeps monthly payments lower than a 15-year term, which could help you qualify for a higher-priced home if it fits your long-term goals.

3. Make Small Credit or Down Payment Improvements

Even modest credit score improvements can unlock better rates and terms, while saving a bit more for a down payment can reduce your monthly payment by lowering your loan amount and potentially avoiding private mortgage insurance (PMI).

4. Pay Attention to Local Pricing Trends

The good news: home prices in some markets are stabilizing or softening. This means buyers who stay informed and act strategically can find opportunities — especially if they’re prepared to move when the right home comes along.

Bottom Line

Figuring out how much home you can afford isn’t about guessing — it’s about running the numbers with today’s rates, your down payment, and your long-term plans. A mortgage professional can help you analyze what’s possible now and identify small changes that could expand your buying power.

📚 Sources

• Consumer Financial Protection Bureau (CFPB) – Home affordability and budgeting guidance: https://www.consumerfinance.gov

• Freddie Mac – Mortgage rate trends and buyer resources: https://www.freddiemac.com

• Federal Housing Finance Agency (FHFA) – Market and home price insights: https://www.fhfa.gov

• National Association of Realtors (NAR) – Housing affordability and price trends: https://www.nar.realtor