For many Americans, the dream of owning a home feels increasingly out of reach. Housing affordability is now among the worst it has been in two decades, according to the Federal Reserve Bank of Atlanta. Since 2020, home prices have surged 47 percent, far outpacing wage growth. At the same time, property taxes and insurance costs have climbed higher, piling on additional financial strain. In Fannie Mae's June National Housing Survey, consumer sentiment reflected this frustration, with 71 percent of respondents saying it was a bad time to buy a home.

Rising borrowing costs have only added to the challenge. Mortgage rates remain stuck between 6.75 and 7 percent, with little sign of major relief ahead. For first-time buyers, who lack equity from a current property, the barrier to entry is even more daunting. A recent Bankrate survey found that 81 percent of aspiring buyers considered down payments and closing costs a significant obstacle to homeownership.

Part of the problem is perception. Many prospective buyers still believe they need to put 20 percent down to purchase a home, a belief that often leads them to conclude ownership is impossible. Given that the median home price in May was $422,800, a 20 percent down payment would mean saving more than $84,000. In high-cost markets like California, where median prices are around $900,000, the figure jumps to an overwhelming $180,000. It is little wonder that 20 percent of respondents in Bankrate's survey said they doubted they would ever be able to save enough for a down payment.

The reality, however, is different. The traditional 20 percent benchmark is largely a myth. Data from the National Association of Realtors shows that first-time buyers in recent years typically put down between 6 and 10 percent. Programs through the Federal Housing Administration allow buyers to put down as little as 3.5 percent, and conventional loan products backed by Fannie Mae and Freddie Mac offer options with down payments as low as 3 percent. For qualifying veterans and active-duty service members, VA loans require no down payment at all. These alternatives can dramatically reduce the upfront costs of buying a home, though they do often require mortgage insurance or result in higher monthly payments over time.

In addition to loan programs, down payment assistance can be a powerful resource. Thousands of state, local, nonprofit, and lender-sponsored programs exist to help buyers bridge the financial gap. Assistance can cover minimum down payment requirements, closing costs, or even help reduce monthly payments by lowering interest rates. Some programs are structured as grants that never need to be repaid. Others are designed for particular groups, such as teachers, first responders, or military families.

Awareness of these programs is growing as affordability challenges intensify. Down Payment Resource, a company that tracks more than 2,500 assistance programs nationwide, reported that a recent partnership with Zillow drew more than one million unique visitors checking their eligibility in just one year. Nearly all of them matched with at least one program.

Importantly, these opportunities are not limited to first-time buyers. Around 40 percent of assistance programs extend to repeat buyers, and income restrictions are often higher than many assume, sometimes stretching to 100 or even 120 percent of area median income—or disappearing altogether. Buyers who already have some savings can combine those funds with assistance to improve their loan terms, reduce debt-to-income ratios, and strengthen their overall application.

Research suggests that lack of awareness is a major reason buyers miss out. One study of declined mortgage applications found that roughly one-third could have been approved if the applicants had used available down payment assistance. In other words, many buyers who believe homeownership is out of reach may simply not know about the resources available to them.

While these programs cannot solve all the challenges of today's housing market, they can make the path to homeownership more realistic. For those discouraged by high prices, rising rates, and persistent affordability struggles, exploring these options may provide the key to unlocking their first home purchase.

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During the peak of the pandemic, Atlanta's housing market was red hot, with bidding wars pushing prices higher and homes vanishing from listings in days. Today, that frenzy has cooled. Rising mortgage rates and an influx of new inventory are giving buyers more leverage—not just in Atlanta, but across much of the country.

According to a recent Zillow report, the U.S. housing market is more balanced than it has been in five years. In 28 of the nation's 50 largest metro areas, conditions now favor buyers or are at least neutral. This shift is especially visible in once-booming southern cities such as Austin, Texas, and Tampa, Florida.

One major driver is inventory. In June, there were 1.36 million homes listed for sale—the highest number since November 2019. Still, supply remains about 21 percent below pre-pandemic averages. Despite more listings, affordability remains the largest hurdle. The average 30-year mortgage rate sits at 6.74 percent, while the median price of existing homes hit a record $435,300 in June.

Builders, who ramped up construction during the pandemic housing rush, are now turning to discounts and incentives to lure buyers. D.R. Horton, the nation's largest homebuilder, noted in its latest earnings report that perks like mortgage buydowns and free upgrades are becoming more common, and it expects to offer even more in the months ahead.The increased flexibility is showing up in listing prices: more than one in four homes had a price reduction in June, the highest share for that month since Zillow began tracking the data in 2018.

Agents in the Atlanta metro area say buyers are cautious and deliberate. "I'm definitely seeing a lot of buyers coming out of the woodwork again wanting to see homes," said Tim Hur of Point Honors and Associates, Realtors. "They kind of have an expectation of what they want." That's exactly what Mia Jung and Haley Byun have found. The couple, who began their search a year ago in an Atlanta suburb, say higher interest rates have forced them to lower their budget, but the upside is less competition and more negotiating room. Half of the homes they've toured have had price drops, and they're willing to wait for the right deal.

"It surprised me a little knowing that we have this flexibility and seeing the house prices just continuously go down," Jung said. "So we have the comfort of knowing we can hold out somewhat."

Economists say both buyers and sellers are adjusting to a new normal, where the ultra-low 3 percent mortgage rates of 2020 and 2021 are unlikely to return. While the Federal Reserve has held rates steady in recent months and signaled possible cuts later this year, mortgage rates are still expected to hover around 6 percent into 2026, according to Fannie Mae.

"A price correction is necessary in order to keep housing sales moving in a positive direction," said Orphe Divounguy, a senior economist at Zillow.

Recent data supports that shift: The S&P CoreLogic Case-Shiller Index showed the smallest annual price gain in nearly two years in May, while Redfin reported that prices fell in more than a quarter of the 50 largest metro areas this past week, particularly in Texas and Florida.

For homeowners looking to sell, expectations are shifting. Listing a home as-is is no longer enough. Renovations, upgrades, and polished presentation have become critical. As Hur explained, "Unfortunately, the days of slapping it on the MLS are just gone."

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For the fifth consecutive meeting, the Federal Reserve has decided to leave its benchmark interest rate unchanged. This continued pause follows three rate cuts in late 2024 — half a percentage point in September and a quarter-point each in November and December. The decision has sparked debate, especially with President Trump, who has been vocal about his preference for further rate reductions.

The impact on the housing market remains uncertain. Mortgage rates tumbled ahead of last year's first Fed cut, falling from 8.01 percent in October 2023 to 6.20 percent by September 2024, according to Bankrate. Yet despite the Fed's year-end cuts, mortgage rates climbed again in January 2025, hitting 7 percent. This divergence highlights that the Fed does not directly control mortgage rates. Instead, mortgage markets react to broader economic conditions. "A Fed on hold aligns with our forecast for little change in mortgage rates for the time being," noted Mike Fratantoni, chief economist at the Mortgage Bankers Association.

When inflation peaked in 2022, the central bank aggressively raised rates, sometimes by as much as three-quarters of a point. Those hikes cooled housing activity, slowing sales even as home prices pushed to record highs. Higher borrowing costs have made it more difficult for buyers, while sellers face softer demand. Still, many economists believe mortgage rates could slip even without another Fed cut. Lisa Sturtevant, chief economist at Bright MLS, explains: "A decline in mortgage rates later this summer could give a jolt to the housing market, bringing buyers off the sidelines to take advantage of the dip in rates and expanded inventory."

While Fed policy sets the tone, mortgage rates more closely track the yield on 10-year Treasury notes. This is why rates sometimes move opposite to the Fed's actions. Greg McBride, chief financial analyst at Bankrate, pointed out: "Despite interest rate cuts amounting to a full percentage point by the Federal Reserve in the latter part of 2024, mortgage rates bounded higher. If mortgage rates are going to come down in any meaningful way, inflation needs to resume the downward march to 2 percent."

As of July 30, 2025, the average 30-year mortgage rate stood at 6.75 percent — well below the 8 percent peak in 2023, but still high compared to the historically low levels of 2020–21. Mortgage rates above 6 percent have cooled demand, but prices continue to climb. The National Association of Realtors reported that the nationwide median price for existing homes in June 2025 hit $435,300 — the highest on record. Long-term history suggests rising rates don't stop buyers altogether. Even in the 1980s, when mortgage rates soared to nearly 18 percent, people continued to purchase homes. Today's slowdown appears more like a market correction than a looming crash.

Still, affordability is stretched thin. A $320,000 loan at today's 6.75 percent rate means a monthly payment of $2,076. If rates fall to 6 percent, the same loan would cost $1,919 a month — saving borrowers about $1,800 annually.

Experts say inflation remains the key factor to watch. If inflation keeps easing, mortgage rates are likely to follow. In the meantime, borrowers can take steps to better position themselves:

• Shop around aggressively: Different lenders may offer noticeably different rates and fees.
• Be cautious with ARMs: Adjustable-rate mortgages may look cheaper at first, but the long-term risk of higher payments is significant.
• Tap home equity wisely: For homeowners with low-rate mortgages, a HELOC or home equity loan may make more sense than refinancing into today's higher rates.

The Fed's pause offers stability but not certainty. While mortgage rates may gradually decline if inflation continues its downward path, affordability remains the biggest challenge. For buyers, careful timing and smart loan strategies could make the difference between waiting on the sidelines and stepping into the market.

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Adjustable-Rate Mortgages Make a Comeback

With fixed mortgage rates stuck around the 7 percent mark and home prices hitting new highs, many buyers are turning to adjustable-rate mortgages (ARMs) as a way to make ownership more affordable. These loans, which offer lower initial interest rates than traditional fixed-rate mortgages, are gaining traction among borrowers who want to ease the upfront cost of buying a home.

Why ARMs Are Back in Demand

ARMs start with a fixed interest rate for an introductory period — often three, five, seven, or ten years — before adjusting periodically based on market conditions. That initial lower rate translates into smaller monthly payments, giving buyers more purchasing power.

"Potential homebuyers are finding ways to reduce their monthly payments and view ARMs as more attractive given the widening spread between rates for ARM and fixed-rate loans," explains Joel Kan, deputy chief economist at the Mortgage Bankers Association (MBA).

At the beginning of 2025, ARMs accounted for just 4.7 percent of all mortgage applications. By midyear, that share had jumped to nearly 8 percent.

The Gamble with ARMs

Taking on an ARM is essentially making a bet about the future of mortgage rates. If rates are lower when your fixed period ends, your payments could fall. If they're higher, your monthly bill could increase significantly.

That uncertainty makes ARMs riskier than fixed-rate mortgages. "Mortgage rates are the magic bullet, and we're waiting and waiting until those come down," said Lawrence Yun, chief economist at the National Association of Realtors. Predicting when — or if — that happens is nearly impossible.

Who Benefits Most from ARMs?

An adjustable-rate mortgage can be a smart choice in certain situations:

Short-term homeowners: If you expect to sell within five to ten years, an ARM lets you enjoy lower payments during your time in the house.

Risk-tolerant borrowers: Some buyers are comfortable trading stability for the chance to save money upfront.

Jumbo loan borrowers: ARMs can make high-priced homes more manageable by reducing early payments.

Extra principal payers: If you can make additional payments during the introductory period, you'll reduce your balance faster and minimize exposure to future rate hikes.

The Risks to Watch

Despite their appeal, ARMs aren't for everyone. They typically require at least a 5 percent down payment, compared to 3 percent for some fixed-rate loans. More importantly, lenders now underwrite ARMs based on the highest possible payment you could face, to make sure you can handle future increases.

That's because life doesn't always go according to plan. A job loss, a stalled home sale, or an economic downturn could leave you stuck with higher payments than you expected. For borrowers who value certainty, fixed-rate mortgages remain the safer bet.

Types of ARMs

If you're considering an adjustable-rate loan, here are the most common options:

• 3/1 or 3/6 ARM – Fixed rate for three years, then adjusts annually or semi-annually. Usually comes with the lowest initial rate.
• 5/1 or 5/6 ARM – Fixed rate for five years, then resets annually or semi-annually. The most common ARM structure.
• 7/1 or 7/6 ARM – Seven years of stability before regular adjustments. Balances lower risk with a still-competitive initial rate.
• 10/1 or 10/6 ARM – A full decade of predictable payments before adjustments begin. Introductory rate is slightly higher but still lower than most fixed-rate mortgages.

All ARMs come with rate caps, which limit how much your interest rate (and payment) can increase annually and over the life of the loan.

Adjustable-rate mortgages can be a useful tool in today's housing market, especially for buyers who don't plan to stay in their homes long-term or who want lower payments in the near future. But they come with real risks, and success depends on financial flexibility — and a tolerance for uncertainty.

If you can't stomach the possibility of higher payments down the line, a fixed-rate loan may still be the better path. But for the right borrower, an ARM can open the door to a home that might otherwise be out of reach.

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For decades, designers called the ceiling the "fifth wall" and used it to add drama and style. Today, more attention is shifting downward, as homeowners and designers embrace the floor as the "sixth wall"—a place where craftsmanship, color, and character can shine. And at the top of that design conversation is wood flooring.

Wood floors are once again in high demand. Their natural warmth, timeless beauty, and growing variety of styles have made them a go-to choice in both new construction and remodeling. Homeowners can select from a wide range of wood species, plank sizes, finishes, and construction types to suit just about any space or style. Solid and engineered wood options provide different benefits depending on a home's needs, but both include real wood and high-end appeal.

This surge in popularity is not just about looks—it is also about value. According to the 2022 Remodeling Impact Report by the National Association of REALTORS and the National Association of the Remodeling Industry, homeowners can expect a return of 147 percent on their investment in wood flooring. That ROI makes it one of the best remodeling decisions for resale value.

However, the luxury comes with a cost. Wood sits at the higher end of the pricing spectrum, partly because it is perceived as a high-end material that retains value rather than fluctuating like a commodity. Solid wood is typically more expensive than engineered options because it offers more thickness and can be refinished multiple times. Still, some engineered wood products—depending on wear layer, length, width, and species—can be just as expensive as solid wood.

Board dimensions also play a role in today's trends. Wider, longer planks—often seven inches or more in width and up to sixteen feet in length—are in vogue for their seamless and modern aesthetic. They create a cleaner, less choppy look that feels luxurious. In historic homes, however, designers often match existing board sizes to maintain authenticity.

Color preferences in wood flooring are shifting along with overall interior design trends. Lighter tones, such as natural or white oak with tan or straw stains, are in demand. Red oak is gaining popularity, while medium browns remain a timeless favorite. Darker woods still find their place as a striking contrast to white walls, though they require more upkeep due to visible dust and debris. Painted or stained floors are also emerging as a cost-effective way to personalize spaces, especially when blending old and new flooring.

The species of wood selected often depends on location and lifestyle. Southern homeowners tend to lean toward harder, less grainy woods like maple and walnut. In the Northeast, white oak and red oak remain top choices due to their availability and versatility.

Finish choices are evolving too. The high-gloss look of years past has given way to a matte or satin sheen, which better hides dust, scratches, and daily wear. Reclaimed wood with natural patina is also making a comeback in vintage-style homes, though it can come at a premium due to its rarity and imperfections. More adventurous homeowners are embracing intricate patterns like chevron or herringbone, though these styles increase installation time and cost.

Maintenance is surprisingly straightforward. Most wood floors just need a light mop with mild soap and water. Applying a new coat of finish every few years helps maintain durability, and full sanding is typically only needed every ten to fifteen years. Like any flooring, wood can be damaged by standing water or pet stains, so some caution is necessary.

Despite the price tag and the care involved, wood flooring continues to be one of the most desired upgrades in today's homes. As designer Patricia Gaylor puts it, nothing beats the feel and richness of real wood. For those on a tighter budget, engineered options provide a stylish and cost-effective alternative that still elevates a space. In the end, wood flooring remains a classic choice that blends beauty, durability, and long-term value—setting the tone for the rest of the home.

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Even small movements in mortgage rates are creating ripples across the housing market this summer. During the week ending July 4, homebuyers jumped at the chance to lock in lower rates, driving a 9 percent surge in mortgage applications for home purchases compared to the previous week. According to the Mortgage Bankers Association (MBA), this spike also marked a 25 percent increase from the same week in 2023—a clear signal that buyers are paying close attention to rate trends.

Mortgage applications are often a preview of upcoming homebuying activity, and these numbers show just how sensitive today's market is to even slight changes in borrowing costs. Joel Kan, MBA's deputy chief economist, credits this renewed buyer demand to a mix of growing housing inventory and a slowing pace of home price growth. Meanwhile, current homeowners took advantage of the brief dip in rates to refinance, with refinance applications jumping 56 percent year-over-year.

However, the window for lower rates did not stay open for long. As of the week ending July 10, rates began climbing again following a stronger-than-expected jobs report. Freddie Mac's latest data shows the average rate for a 30-year fixed mortgage has ticked up to 6.72 percent from 6.67 percent the previous week. That is still lower than the 6.89 percent average from a year ago, but the upward movement signals volatility ahead.

Freddie Mac's chief economist Sam Khater noted that despite affordability challenges, homebuyers and those looking to refinance are reacting quickly when rates decline. This week's mortgage rate increases came after five straight weeks of drops, showing just how quickly market dynamics can shift.

One notable trend is the decreasing size of the average mortgage loan. The MBA reports that the average loan amount for a home purchase has dropped to $432,600, the lowest level since January. This suggests buyers are either opting for more modest homes or that pricing pressures may be softening in some markets.

Here's how national mortgage rates stack up this week, according to Freddie Mac:

30-year fixed-rate mortgages averaged 6.72 percent, up from last week's 6.67 percent. One year ago, the rate was 6.89 percent.

15-year fixed-rate mortgages averaged 5.86 percent, up from 5.80 percent last week. At the same time last year, the average was 6.17 percent.

While rates remain high by historical standards, even slight improvements are enough to draw buyers and homeowners off the sidelines. As we move deeper into the summer market, the key question is whether rates will stabilize, rise again, or dip just enough to keep this momentum going. For now, one thing is clear—buyers are watching the market closely and are ready to act when the numbers make sense.

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Summer Mortgage Rates Stir the Housing Market into Motion

Even small movements in mortgage rates are creating ripples across the housing market this summer. During the week ending July 4, homebuyers jumped at the chance to lock in lower rates, driving a 9 percent surge in mortgage applications for home purchases compared to the previous week. According to the Mortgage Bankers Association (MBA), this spike also marked a 25 percent increase from the same week in 2023—a clear signal that buyers are paying close attention to rate trends.

Mortgage applications are often a preview of upcoming homebuying activity, and these numbers show just how sensitive today's market is to even slight changes in borrowing costs. Joel Kan, MBA's deputy chief economist, credits this renewed buyer demand to a mix of growing housing inventory and a slowing pace of home price growth. Meanwhile, current homeowners took advantage of the brief dip in rates to refinance, with refinance applications jumping 56 percent year-over-year.

However, the window for lower rates did not stay open for long. As of the week ending July 10, rates began climbing again following a stronger-than-expected jobs report. Freddie Mac's latest data shows the average rate for a 30-year fixed mortgage has ticked up to 6.72 percent from 6.67 percent the previous week. That is still lower than the 6.89 percent average from a year ago, but the upward movement signals volatility ahead.

Freddie Mac's chief economist Sam Khater noted that despite affordability challenges, homebuyers and those looking to refinance are reacting quickly when rates decline. This week's mortgage rate increases came after five straight weeks of drops, showing just how quickly market dynamics can shift.

One notable trend is the decreasing size of the average mortgage loan. The MBA reports that the average loan amount for a home purchase has dropped to $432,600, the lowest level since January. This suggests buyers are either opting for more modest homes or that pricing pressures may be softening in some markets.

Here's how national mortgage rates stack up this week, according to Freddie Mac:

30-year fixed-rate mortgages averaged 6.72 percent, up from last week's 6.67 percent. One year ago, the rate was 6.89 percent.

15-year fixed-rate mortgages averaged 5.86 percent, up from 5.80 percent last week. At the same time last year, the average was 6.17 percent.

While rates remain high by historical standards, even slight improvements are enough to draw buyers and homeowners off the sidelines. As we move deeper into the summer market, the key question is whether rates will stabilize, rise again, or dip just enough to keep this momentum going. For now, one thing is clear—buyers are watching the market closely and are ready to act when the numbers make sense.

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