H
ousing affordability improved in 43 of the top 50 US markets in April, according to a recent report from First American. This marks one of the largest annual increases in affordability over the past five years, with a national improvement of 4.4%. The study found that areas with growing inventory saw significant improvements in affordability.

    Markets like Miami and Austin experienced substantial gains due to their large supply of homes, while cities like Buffalo and Hartford struggled with low inventory levels. Chief economist Mark Fleming notes that Southern and Western markets are likely to see continued rises in affordability, whereas Midwestern and Northeastern markets may face more challenges.

    Buyer behavior remains sensitive to mortgage rate fluctuations, which have hovered below 7% this year. Deputy chief economist Odeta Kushi suggests that steady income gains and a slowdown in home price growth will help incrementally, but mortgage rates will remain the dominant short-term driver of buyer activity. Rates close to 6% could be a psychological tipping point for many buyers, but stability and clarity are also crucial factors in restoring momentum to the housing market.