The U.S. housing market is ‘finally starting to listen’ to homebuyers plagued by high mortgage rates and home prices, economist says

A family stands in front of home, facing it (Credit: Getty Images)

• Housing affordability in the U.S. has improved slightly in 2025 due to mortgage rates trending down and home price growth flattening or declining in some markets, though conditions are still much more difficult than before the pandemic. A First American analysis shows a 3.1% year-over-year gain in affordability. However, most Americans still find homeownership challenging.

After years of affordability challenges for buyers in the U.S., the housing market is “finally starting to listen,” according to Fortune 500 financial services firm First American.