There isn’t just one factor that determines whether a home’s affordable or not. The buyer’s down payment, the home’s price, current mortgage rates, insurance, and property taxes all play a role. And that’s not even a complete list. Nevertheless, a new survey of potential home buyers found that they’re laser focused on mortgage rates above all other affordability factors. In fact, the survey found 59 percent say rates matter more than home prices and 67 percent say rates are stressing them out. The good news? The average mortgage rate has recently fallen and is expected to remain relatively steady this year. That means potential home buyers who may be feeling stressed about rates can feel comfortable knowing there aren’t likely to be any significant spikes moving them higher in 2026. But buyers also have to set appropriate expectations. According to the survey, 20 percent of respondents say they expect mortgage rates to fall back to pandemic-era lows not seen since 2022. That’s highly unlikely and far below the level forecasted by all the major economic outlooks. (source)
