Skip to content
Mortgage Payment
Envelope Facebook Twitter Linkedin Instagram
Search
Find a Branch
  • Home Page
  • Locations
  • Pick Your Mortgage
    • BuyAHome
    • SaveMoney
    • UseMyVABenefits
    • BuyBig
    • Remodel
    • HelpWithDownPayment
    • RuralHousing
    • CreditChallenged
    • RetireComfortably
  • Loan Options
    • TRADITIONAL PROGRAMS
    • Purchase
    • Refinance
    • Conventional Loan
    • FHA Loan
    • VA Loan
    • Jumbo Loan

    • SPECIALTY PRODUCTS
    • Home Select
    • Portfolio Lending
    • FHA Approved Condos
    • FHA No Credit Score
    • Reverse Mortgage
    • HERO Loan
    • USDA Loan
    • USDA Renovation
    • Physician Loan
    • Renovation Loan
    • HELOC
    • Self Employed
    • Down Payment Assistance Loans
    • First Time Home Buyers
    • Credit Challenged
    • Fixed vs. Adjustable Rate Mortgages
    • Arrive Home Program
  • Apply now
    • Long Form
    • Short Form
  • Resources
    • Mortgage News
    • Geneva AMP
    • Mortgage Payment
    • Login to My Loan
    • Mortgage Calculators
    • Homebuyers Guide
    • Mortgage FAQ
    • Today’s Rates
    • Mortgage Terms Defined
  • Home By Geneva
  • Careers
    • Branch & LO Opportunity
    • Operations
  • Our Story
    • About Geneva Financial
    • Leadership Team
    • Press Releases
    • Contact Us
    • Be A Good Human
    • Human Stories
    • Client Reviews
  • Home Page
  • Locations
  • Pick Your Mortgage
    • BuyAHome
    • SaveMoney
    • UseMyVABenefits
    • BuyBig
    • Remodel
    • HelpWithDownPayment
    • RuralHousing
    • CreditChallenged
    • RetireComfortably
  • Loan Options
    • TRADITIONAL PROGRAMS
    • Purchase
    • Refinance
    • Conventional Loan
    • FHA Loan
    • VA Loan
    • Jumbo Loan

    • SPECIALTY PRODUCTS
    • Home Select
    • Portfolio Lending
    • FHA Approved Condos
    • FHA No Credit Score
    • Reverse Mortgage
    • HERO Loan
    • USDA Loan
    • USDA Renovation
    • Physician Loan
    • Renovation Loan
    • HELOC
    • Self Employed
    • Down Payment Assistance Loans
    • First Time Home Buyers
    • Credit Challenged
    • Fixed vs. Adjustable Rate Mortgages
    • Arrive Home Program
  • Apply now
    • Long Form
    • Short Form
  • Resources
    • Mortgage News
    • Geneva AMP
    • Mortgage Payment
    • Login to My Loan
    • Mortgage Calculators
    • Homebuyers Guide
    • Mortgage FAQ
    • Today’s Rates
    • Mortgage Terms Defined
  • Home By Geneva
  • Careers
    • Branch & LO Opportunity
    • Operations
  • Our Story
    • About Geneva Financial
    • Leadership Team
    • Press Releases
    • Contact Us
    • Be A Good Human
    • Human Stories
    • Client Reviews

Key Factors That Impact Affordability Today

Home>> Key Factors That Impact Affordability Today

You can’t read an article about residential real estate without the author mentioning the affordability challenges that today’s buyers face. There is no doubt homes are less affordable today than they were over the last two years, but that doesn’t mean homes are now unaffordable.

There are three measures or key factors used to establish home affordability: home prices, mortgage rates, and wages.

There are three measures or key factors used to establish home affordability: home prices, mortgage rates, and wages. Let’s look closely at each of these components.

1. Home Prices

The most recent Home Price Insights report by CoreLogic shows home values have increased by 19.1% from last January to this January. That was one reason affordability declined over the past year.

2. Mortgage Rates

While the current global uncertainty makes it difficult to project mortgage rates, we do know current rates are almost one full percentage point higher than they were last year. According to Freddie Mac, the average monthly rate for last February was 2.81%. This February it was 3.76%. That increase in the mortgage rate also contributes to homes being less affordable than they were last year.

3. Wages

The one big, positive component in the affordability equation is an increase in American wages. In a recent article by RealtyTrac, Peter Miller addresses that point:

“Prices are up, but what about wages? ADP reports that job holder incomes increased 5.9% last year but rose 8.0% for those who switched employers. In effect, some of the higher cost to buy a home has been offset by more cash income.”

The National Association of Realtors (NAR) also recently released information that looks at income and affordability. The NAR data provides a comparison of the current median family income versus the qualifying income for a median-priced home in each region of the country. Here’s a graph of their findings:

Key Factors That Impact Affordability Today

As the graph shows, the median family income (shown in blue on the graph) is greater than the qualifying income needed to buy a median-priced home (shown in green on the graph) in all four regions of the country. While those figures may vary in certain locations within each region, it’s important to note that, in most of the country, homes are still affordable.

So, when you think about affordability, remember that the picture includes more than just home prices and mortgage rates. When prices rise and rates rise, it does impact affordability, and experts project both of those things will climb in the months ahead. That’s why it’s less affordable to buy a home than it was over the past two years when prices and rates were lower than they are today. But wages need to be factored into affordability as well. Because wages have been rising, they’re a big reason that, while less affordable, homes are not unaffordable today.

Bottom Line

To find out more about affordability in our local area, let’s discuss where home prices are locally, what’s happening with mortgage rates, and get you in contact with a lender so you can make an informed financial decision. Remember, while less affordable, homes are not unaffordable, which still gives you an opportunity to buy today.

Want to see what your mortgage payment might look like? Check out our mortgage calculator below:

The #1 Reason To Sell Your House Today

Check out loan programs that could finance a renovation

The #1 Reason To Sell Your House Today

We are loving this natural grain wood table, perfect for a newly renovated kitchen, check it out here

Share:

More Human Stories

Chicken Mole Nachos

Chicken Mole Nachos

Spice up your summer watchlist with Chicken Mole

Smiling young couple buyers shake and get acquainted greet with relator or broker at office meeting. Happy man and woman clients handshake close deal or make agreement with real estate agent.

Don’t Let Student Loans Hold You Back from Homeownership

Did you know? According to a recent study, 72% of

Polaroid Now+ Instant Camera

Capture creativity and nostalgia with the Polaroid Now+

budget friendly summer travel ideas

Budget-Friendly Summer Travel Ideas

Home By Geneva>Budget-Friendly Summer Travel Ideas Stretch your

Rapid Rate Quote

PrevPreviousAre Home Prices Continuing To Rise?
NextShould I Buy A Home This Year?Next

Find a Branch

Mortgage Calculator

Homebuyer's Guide

Get Today's Rates

Apply for a Mortgage or Refinance

Loan Programs

Mortgage Terms Defined

Login to an Existing Mortgage Loan

Careers

Contact Us
  • 180 S. Arizona Ave Ste 310 Chandler, AZ 85225
  • (888) 889 - 0009
  • humansupport@genevafi.com

Your Mortgage Options

  • Apply Now
  • Mortgage Payment
  • Find a Licensed Loan Officer
  • Check Today’s Rates
  • Mortgage Calculator
  • Homebuyer Mortgage Guide

Geneva Goodies

  • Branch Manager and Loan Officer Opportunities
  • Home by Geneva - Home Design & Lifestyle
  • Geneva Gives

Geneva Financial offers Conventional, FHA, VA, USDA, Refinance, Reverse, Jumbo and Condo Financing as well as Down Payment Assistance Programs, First-Time Homebuyer Programs, Physician Loans and Hero Loans for First Responders, Police, Firefighters, Nurses, and Teachers.

Geneva Financial LLC, Copyright © 2025
NMLS #42056 | BK #0910215 | MA #ML42056 | CA #603G564
Privacy | Legal Disclaimer | An Equal Housing Lender | All Rights Reserved
  • Site Accessibility
  • Communication Opt Out
  • Disclosures and Licenses
  • Terms of Use
  • Security and Privacy
  • Email and Text Policy
  • Do Not Sell My Personal Information
  • Site Accessibility
  • Communication Opt Out
  • Disclosures and Licenses
  • Terms of Use
  • Security and Privacy
  • Email and Text Policy
  • Do Not Sell My Personal Information
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT

Quick Rate Quote