A recent dip in mortgage rates coupled with rising incomes has given the median-income U.S. household a significant boost in homebuying power, expanding their budget by more than $30,000 compared to a year ago, according to new research from Zillow.

This improvement in affordability means a median-income buyer can now comfortably afford a $331,483 home, provided they make a 20% downpayment. This marks the highest level of purchasing power since March 2022, according to the report.

The shift has unlocked roughly 82,300 additional affordable listings nationwide and is expected to fuel a more active spring home shopping season.  Anticipating this momentum, Zillow forecasts a 4% rise in existing home sales this year over 2025.

 

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U.S. homebuyer purchasing power surges by $30,000 as mortgage rates cool