Agents and buyers shaking hands over closing paperwork at a table outside a new Florida home

Home Affordability Through the Years

Is Now a Good Time to Buy? Here's How Today Compares.

Rates and prices only tell half the story. What matters is how much of a typical paycheck goes to the mortgage.

Today's Average Rate (30-Year Fixed)

7.40%

U.S. Median Home Price

$417,500

Typical U.S. Payment

$2,313/mo

(about 32% of income)

National figures. Treasure Coast prices vary by city and neighborhood. Rate as of October 15, 2026 (Freddie Mac). Price as of September 2026 (National Association of REALTORS®).

How Much of Your Income Goes to the Mortgage?

Under 25%
25% to 30%
Over 30%

28%: Lenders' traditional comfort zone

The outlined bar is Today.

Sources: Freddie Mac, National Association of REALTORS®, U.S. Census Bureau. Calculated by Pete & Kate Real Estate.

Buyers in 1981 spent nearly half their income on the mortgage. Today it's about a third. In 2021 it was just one fifth.

Mortgage Rates Since 1975

Source: Freddie Mac Primary Mortgage Market Survey, annual average 30-year fixed rate

Today's rate is higher than the past decade but well below the 1980s and 1990s.

Home Prices Since 1975

Source: National Association of REALTORS®, median existing-home sales price

Prices have risen about 12 times since 1975. Incomes rose about 7 times, which is why a bigger share of income goes to housing today.

Then vs. Now

1981

Rate: 16.63%
Price: $66,400
Payment: $741/mo

47% of income

2000

Rate: 8.05%
Price: $143,600
Payment: $847/mo

24% of income

2006

Rate: 6.41%
Price: $221,900
Payment: $1,112/mo

28% of income

2021

Rate: 2.96%
Price: $346,900
Payment: $1,164/mo

20% of income

Today

Rate: 7.40%
Price: $417,500
Payment: $2,313/mo

32% of income

What If Rates Drop?

Tap a rate to see the monthly payment on the $417,500 median home with 20% down.

Monthly payment at 7.4%

$2,313

Principal and interest, 30-year fixed

Buy now and refinance later is an option many buyers use. Prices don't always wait for rates.

Bright Florida home with palm trees under a blue sky

Should You Wait for Rates to Drop?

Waiting can make sense for some buyers. But it comes with trade-offs most people don't think about.

Buy Now

Price: $417,500
Rate: 7.4%
Down payment: $83,500

Monthly payment

$2,313

Wait for Lower Rates

Price: $438,375 (5% higher)
Rate: 6.5%
Down payment: $87,675

Monthly payment

$2,217

More buyers, more competition, less room to negotiate.

Best of both

Buy Now, Refinance Later

Price: $417,500
Starting rate: 7.4%, refinanced to 6.5%
Down payment: $83,500

Monthly payment after refinance

$2,111

Refinancing has closing costs. Talk to a lender about your break-even point.

What Happens When Rates Drop

1. Rates drop
2. Buyers who were waiting come back
3. More competition, fewer price cuts, more multiple offers

In 2021, when rates fell below 3%, the national median home price jumped 17% in one year.

What buyers have right now

Less competition from other buyers
Sellers more open to price reductions
Room to negotiate repairs and closing costs

No one can predict rates or prices. Prices don't always rise when rates fall, and every buyer's situation is different. These examples use national figures and principal and interest only.

Example calculations by Pete & Kate Real Estate using the national figures on this page. 2021 price change from National Association of REALTORS® data.

Quiet Florida beach at sunrise with sea oats on the dunes

You can refinance your rate later.
You can't renegotiate your price.

Bright white Florida home with a metal roof, palm trees and a green lawn under a blue sky

The Bottom Line

Today's rates are close to the long-term average. The record lows of 2012 to 2021 were the exception, not the norm.
Buying today is more affordable than most of the 1980s, when payments took 33% to 47% of income.
Local prices on the Treasure Coast vary a lot by neighborhood. We can show you what your payment would be in the areas you're considering.

Thinking about buying? See why now could be the right time.

Calm Indian River Lagoon view in Florida

Want to see your real numbers? Talk to Peter and Kate.

Pete & Kate Real Estate, RE/MAX Gold

Peter White 772-284-1419 Kate Ward 772-342-4006

Where This Data Comes From

Every number on this page comes from a public, trusted source. Here's where to find it yourself.

Mortgage Rates

Freddie Mac Primary Mortgage Market Survey. Annual average 30-year fixed rate. "Today" is the week of October 15, 2026.

View source

Home Prices

National Association of REALTORS®. National median existing-home sales price. "Today" is September 2026.

View source

Household Income

U.S. Census Bureau. National median household income, not adjusted for inflation. "Today" uses 2025, the latest available.

View source

How we calculated the payment: principal and interest only on the median-priced home, with 20% down and a 30-year fixed loan at that year's average rate. Taxes, insurance, and HOA fees are not included. These are national figures; Treasure Coast numbers vary. Last updated October 2026.