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Housing affordability is always a concern, but with mortgage rates high and inflation ticking back up recently, it’s become increasingly top of mind for consumers. If these trends continue, it could send buyer demand further down — and home prices with it. If things improve, though, demand could rise, and home prices might climb even higher.
Which is most likely to happen in the near term, though? We asked some experts about what they expect for housing affordability for the fall. Below, we’ll break down their predictions and what next steps current homebuyers may want to take right now.
Start by seeing what mortgage interest rate you could qualify for here.
Will buying a home be more affordable this fall?
Lots of factors influence housing affordability, but one of the most important, at least this fall, will be mortgage rates.
“The biggest factor that will change affordability will be the movement in interest rates, if there is any,” says Mark Worthington, branch manager and home loan specialist at Churchill Mortgage. “If rates go down dramatically, affordability will increase for a short period of time. Once the demand rises enough with lower rates, then prices will likely rise and this will then negatively affect affordability.”
Are rates likely to fall, though? That depends on where you look. The Mortgage Bankers Association is forecasting the average 30-year mortgage rate to be at 6.7% by the end of the year — right around where it sits today. Fannie Mae forecasts a small drop in rates, with an average of 6.4% by year’s end.
“Mortgage rates are holding steady,” says Debra Shultz, vice president of lending at CrossCountry Mortgage. “The Fed is expected to delay rate cuts until October 2025, keeping rates relatively steady through the fall.”
That might not sound like good news for most homebuyers, but experts say it’s better than constantly up-and-down mortgage rates, which make it hard for consumers to make decisions.
“I think the most important thing is rate stability — versus volatility,” says Dana Bull, a real estate advisor with Compass in Massachusetts. “If rates are stable, buyers and sellers can make plans without feeling like the rug is about to be pulled out from under them.”
See what rates and terms are available to you here.
Inventory will play a big role
Another big influencer on affordability is inventory — or how many homes are for sale at a given time. When inventory is high and buyers have lots of options, it creates seller competition and makes things more affordable. When for-sale homes are limited, it does the opposite, eroding affordability for buyers.
Across the country, inventory is generally on the rise, which could help ease home prices overall. Realtor.com data shows for-sale inventory jumped almost 25% between July 2024 and July 2025, hitting its highest point since the pandemic.
Still, that’s overall data, and individual markets can vary quite a bit.
“Everything this year is incredibly market- and pricepoint-specific,” says Jennifer Beeston, executive vice president of national sales at Guaranteed Rate. “For instance, in Seattle we are already back to bidding wars, whereas in Dallas in the sub-$500,000 pricepoint, we have plenty of inventory to pick and choose from.”
Mortgage rates will also be a big determinant of where inventory goes. If mortgage rates drop, homeowners who currently have very low interest rates will be more likely to list their homes and buy new ones, unlocking a lot of pent-up inventory nationally.
“The so-called ‘lock‐in effect’ still limits turnover,” Shultz says.
Home prices will hold steady or slightly decline
Data shows that home prices are still growing nationally — but the rate at which they’re increasing is slowing down. Currently, the median home price is just under $411,000.
“Prices are slowing but still high,” Shultz says. “Most forecasts expect modest price growth of around 2 to 3% for the full year — or even slight declines in select markets.”
Fannie Mae’s forecast shows price growth slowing down steadily through the end of 2026, though on the ground, it will depend on the specific market you’re in. Again, mortgage rates will play in, too. If they stay high or even rise, that will reduce demand and potentially cause prices to drop. If rates drop a significant amount, home prices could tick back up again.
“If mortgage rates drop enough — I would say below the 6% mark — we will see lots of competition among buyers, likely increasing prices due to pent-up market demand,” says Brandi Wolff, a real estate agent at Guide Real Estate in Denver. “If mortgage rates stay relatively steady, then prices could see a slight decline.”
Move-up buyers may have a hard time selling
If you’re contemplating selling and purchasing a new home, you’re on both sides of the fence. With increased inventory and rates high, you might have a hard time selling your home, but then an easier time buying one. It all depends on the market, though.
“As a move-up buyer, you want to get the most for the house you’re selling and pay the least for the home you’re buying,” Beeston says. “This can only be accomplished if you are selling in a seller’s market and buying in a buyer’s’ market. If you are buying in the same market you live in, odds are you are going to be making some adjustments.”
In July 2025, the typical home spent 58 days on the market, according to the Realtor.com data, which is up a full week from a year ago. That indicates waning buyer demand or excess inventory, and as a seller, it might mean cutting your listing price or offering other perks to get your home noticed.
“As a seller in our current market, you absolutely must price your home correctly from the start,” Wolff says. “Statistically, you’re less likely to maximize your profits for your home in the end if you price it too high — due to having to significantly drop the price to attract a contract — than you would if you’d priced it right from the beginning.”
How to make buying a home more affordable this fall
Forecasts aren’t set in stone, and as conditions change, the trajectory for housing affordability can change, too. Keep an eye on mortgage rates, and talk to a real estate agent in your area to stay on top of pricing trends in your local market.
And if you want to make your home purchase more affordable no matter where prices or rates go, consider negotiating seller concessions or a mortgage rate buydown with your lender. These can both reduce your costs as a homebuyer.
You can also be choosier about the home you buy. Purchasing a fixer-upper, for instance, may offer a lower price than a more move-in-ready home. You can also look for homes that have been listed for a while.
“Sellers tend to get more motivated when their home has been sitting on the market for more than 30 days,” Bull says. “They may be willing to concede on price if your offer is otherwise compelling.”
