---
title: "Home Affordability Then vs Now | Mortgage Rates & Home Prices Since 1975 | Pete & Kate Real Estate"
url: https://petekaterealestate.com/home-affordability
description: "See how today's mortgage rates and home prices compare to the past 50 years, and what share of income a typical mortgage payment takes now. Treasure Coast"
lang: en
---

Image: Agents and buyers shaking hands over closing paperwork at a table outside a new Florida home (https://petekaterealestate.com/assets/buy-Cl06iV0x.webp)

Home Affordability Through the Years

# Is Now a Good Time to Buy? Here's How Today Compares.

Rates and prices only tell half the story. What matters is how much of a typical paycheck goes to the mortgage.

Today's Average Rate (30-Year Fixed)

7.40%

U.S. Median Home Price

$417,500

Typical U.S. Payment

$2,313/mo

(about 32% of income, before taxes and insurance)

National figures. Treasure Coast prices vary by city and neighborhood. Rate as of October 15, 2026 (Freddie Mac). Price as of September 2026 (National Association of REALTORS®).

## How Much of Your Income Goes to the Mortgage?

- Under 25%
- 25% to 30%
- Over 30%

28%: Lenders' traditional comfort zone

The outlined bar is Today.

Sources: Freddie Mac, National Association of REALTORS®, U.S. Census Bureau. Calculated by Pete & Kate Real Estate.

Buyers in 1981 spent nearly half their income on the mortgage. Today it's about a third. In 2021 it was just one fifth.

## Mortgage Rates Since 1975

Source: Freddie Mac Primary Mortgage Market Survey, annual average 30-year fixed rate: https://www.freddiemac.com/pmms

Today's rate is higher than the past decade but well below the 1980s and 1990s.

## Home Prices Since 1975

Source: National Association of REALTORS®, median existing-home sales price: https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales

Prices have risen about 12 times since 1975. Incomes rose about 7 times, which is why a bigger share of income goes to housing today.

## Then vs. Now

1981

Rate

16.63%

Price

$66,400

P&I payment

$741/mo

47% of income

2000

Rate

8.05%

Price

$143,600

P&I payment

$847/mo

24% of income

2006

Rate

6.41%

Price

$221,900

P&I payment

$1,112/mo

28% of income

2021

Rate

2.96%

Price

$346,900

P&I payment

$1,164/mo

20% of income

Today

Rate

7.40%

Price

$417,500

P&I payment

$2,313/mo

32% of income

P&I = principal and interest only. Taxes and insurance not included.

## See Your Payment at Different Rates

Tap a rate to see the monthly payment on the $417,500 median home with 20% down.

Monthly payment at 7.4%

$2,313

Today's average rate

Principal and interest only, 30-year fixed

Your actual payment will be higher. This doesn't include property taxes, homeowners insurance, flood insurance, or HOA fees. In Florida, insurance and taxes can add several hundred dollars or more per month. We can help you estimate your full payment.

Rates shown are examples, not predictions.

Image: Bright Florida home with palm trees under a blue sky (https://petekaterealestate.com/assets/florida-home-BMLr0f89.webp)

## Should You Wait for Rates to Drop?

Waiting can make sense for some buyers. But it comes with trade-offs most people don't think about.

### Buy Now

Price

$417,500

Rate

7.4%

Down payment

$83,500

Monthly payment (principal and interest)

$2,313

### Wait for Lower Rates

Price

$438,375 (5% higher)

Rate

6.5%

Down payment

$87,675

$2,217

More buyers, more competition, less room to negotiate.

Best of both

### Buy Now, Refinance Later

Price

$417,500

Starting rate

7.4%, refinanced to 6.5%

Down payment

$83,500

Monthly payment (principal and interest) after refinance

$2,111

Refinancing has closing costs. Talk to a lender about your break-even point.

### Why Prices Can Rise When Rates Fall

1. \1. Rates drop
2. \2. Buyers who were waiting come back
3. \3. More competition, fewer price cuts, more multiple offers

In 2021, when rates fell below 3%, the national median home price jumped 17% in one year.

### What buyers have right now

- Less competition from other buyers
- Sellers more open to price reductions
- Room to negotiate repairs and closing costs

No one can predict rates or prices. Prices don't always rise when rates fall, and every buyer's situation is different. These examples use national figures and principal and interest only.

Example calculations by Pete & Kate Real Estate using the national figures on this page. 2021 price change from National Association of REALTORS® data.

Image: Quiet Florida beach at sunrise with sea oats on the dunes (https://petekaterealestate.com/assets/coastal-takeaway-CDHeLKKw.webp)

You can refinance your rate later.
You can't renegotiate your price.

Image: Sunny Florida beach with gentle turquoise waves, white sand and palms along the shore (https://petekaterealestate.com/assets/card-beach-DxISxw0l.webp)

## The Bottom Line

- Today's rates are close to the long-term average. The record lows of 2012 to 2021 were the exception, not the norm.
- Buying today is more affordable than most of the 1980s, when payments took 33% to 47% of income.
- Local prices on the Treasure Coast vary a lot by neighborhood. We can show you what your payment would be in the areas you're considering.

Thinking about buying? See why now could be the right time. (https://petekaterealestate.com/why-buy-now)

## Where This Data Comes From

Every number on this page comes from a public, trusted source. Here's where to find it yourself.

### Mortgage Rates

Freddie Mac Primary Mortgage Market Survey. Annual average 30-year fixed rate. "Today" is the week of October 15, 2026.

View source (https://www.freddiemac.com/pmms)

### Home Prices

National Association of REALTORS®. National median existing-home sales price. "Today" is September 2026.

View source (https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales)

### Household Income

U.S. Census Bureau. National median household income, not adjusted for inflation. "Today" uses 2025, the latest available.

View source (https://fred.stlouisfed.org/series/MEHOINUSA646N)

How we calculated the payment: principal and interest only on the median-priced home, with 20% down and a 30-year fixed loan at that year's average rate. Taxes, insurance, and HOA fees are not included. These are national figures; Treasure Coast numbers vary. Last updated October 2026.

Image: Calm Indian River Lagoon view in Florida (https://petekaterealestate.com/assets/lagoon-contact-BYIA14aw.webp)

## Want to see your real numbers? Talk to Peter and Kate.

Peter White 772-284-1419: +17722841419

Kate Ward 772-342-4006: +17723424006

Call Us (+17722841419)

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