Naturally, affordability is a top factor among home buyers. After all, whether or not you can afford to buy a home is the first question you have to answer before beginning the buying process. That's why 2023 was a slow year for the housing market. Affordability was at a low. In fact, according to the National Association of Home Builders' Housing Opportunity Index, affordability during the fourth quarter of last year was at its lowest level in more than a decade. Fortunately, though, conditions have already improved.
Alicia Huey, NAHB's chairman, says she expects further gains this year. “Affordability conditions should show some gradual improvement this year, as mortgage rates peaked in the fourth quarter of 2023 ...” Huey said. It's true. Rates peaked in October of last year and have fallen significantly over the past few months. That, along with expected inventory gains this year, has most market forecasts calling for improved affordability conditions this spring selling season and beyond.
[Source: NAHB]
