U.S. housing affordability improves as mortgage costs ease
An October 2025 ICE Mortgage Monitor report finds housing affordability is the best it has been since late 2023, with 30-year mortgage rates averaging 6.26% in mid-September and the typical monthly principal-and-interest (P&I) payment on an average-priced home falling to $2,148 — about 30% of median U.S. household income. CBS News notes market odds for additional Federal Reserve rate cuts are high (per CME FedWatch), which could further lower mortgage costs; the piece advises potential buyers that reduced competition now and the potential for more favorable rates make acting this fall attractive.
Economy
Housing/Real Estate
📌 Key Facts
- ICE Mortgage Monitor (Oct. 2025) reports 30-year mortgage rates averaged 6.26% in mid-September 2025.
- Monthly P&I on an average-priced home: $2,148, equal to roughly 30% of median U.S. household income (improved from a 35% peak in late 2023).
- CME Group FedWatch assigns roughly 92% odds of a Fed rate cut in October 2025 and ~80% odds of a cut in December 2025 — market moves affecting mortgage pricing.