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Home Affordability Rises as Prices Drop for Six Months

2/5/2026

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Summary

Story summary

Home affordability is improving as prices have fallen for six consecutive months, per Zillow.
The average mortgage rate remains just under 7%, well above the pandemic-era rate of about 3%.
Zillow's home price index fell 0.4% from December to January.
January listings rose 6% year over year as more homeowners put properties on the market.
Zillow expects about 20 major housing markets to be more affordable this year.

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Story summary

Home affordability is improving as prices have fallen for six consecutive months, per Zillow.
The average mortgage rate remains just under 7%, well above the pandemic-era rate of about 3%.
Zillow's home price index fell 0.4% from December to January.
January listings rose 6% year over year as more homeowners put properties on the market.
Zillow expects about 20 major housing markets to be more affordable this year.