More markets favor buyers – so why does affordability keep slipping
“More buyers can negotiate in more markets, but a bigger negotiating advantage doesn’t always mean more affordability,” said Jake Krimmel, senior economist at Realtor.com.
“As rates rise, the same monthly budget supports a lower home price. Market leverage and purchasing power are moving in opposite directions right now.”
The 30-year mortgage rate held steady this week, offering some relief for borrowers. Mike Fratantoni of the Mortgage Bankers Association says buyer expectations have shifted in today’s market. https://t.co/kisGllMr2M
— Mortgage Professional America Magazine (@MPAMagazineUS) October 15, 2026
A tale of two trends
The squeeze is compounding wider pressure on broker pipelines. Builder confidence fell to a 14-year low as rising mortgage rates and construction costs battered the new-home market, with buyer traffic at its lowest since April 2012.
National Association of Home Builders (NAHB) Chief Economist Robert Dietz, based in Washington, DC, put the problem plainly.
“Housing remains squeezed by supply-side constraints and significant affordability challenges. Demand persists, but higher mortgage rates, elevated construction costs and weaker consumer confidence are keeping more buyers on the sidelines,” he said.
