Affordability Is Improving — Nationally and Here in Northern Virginia

For the past couple of years, many hopeful buyers took a step back — and I don’t blame them. Mortgage rates climbed, home prices surged, and for a lot of people, the math just didn’t make sense. But here in Fall 2025, things are shifting in the right direction.

Whether you’re a first-time buyer or a move-up homeowner considering your next chapter in the Northern Virginia real estate market, you should know: affordability is improving — and the numbers back it up.

Let’s break down what’s happening and why I believe this fall presents a fresh opportunity for buyers who’ve been waiting for the right moment.

Monthly Mortgage Payments Are Trending Down

One of the most promising trends right now is the drop in median monthly mortgage payments. According to Redfin, the typical payment has fallen by nearly $290 in just the last few months.

Here’s a look at the national trend — but it reflects what we’re seeing locally too, especially in price bands between $600K–$1.2M across Fairfax, Vienna, Reston, and Arlington:

Why Are Payments Dropping? Let’s Look at Mortgage Rates

The biggest driver? Mortgage rates have come down — significantly. Just this past spring, rates hovered around 7%. Today, we’re seeing 30-year fixed rates closer to 6.2%, according to Freddie Mac.

Even a 0.5–0.75% rate drop can translate into hundreds of dollars in savings each month, especially on mortgages around $500K–$800K — a common loan range in Northern VA.

Example: On a $700,000 home with 20% down, this drop in rate could save you over $225/month.

Home Prices Have Leveled — or Dipped Slightly

Let’s talk prices.

Nationwide, price growth has slowed to the low single digits. And in some Northern Virginia submarkets, we’re even seeing small dips — particularly in outer areas like Gainesville, Haymarket, and Lorton, or in luxury condos that sat longer than expected.

Realtor.com data confirms this trend. But here’s what I’m seeing personally:

Vienna and McLean remain competitive, but appreciation has slowed
Buyers are pushing back on overpriced listings
Sellers are becoming more flexible with pricing and closing costs

That gives well-prepared buyers a better seat at the negotiating table.

Wages Are Up — and Outpacing Price Growth

Another factor that’s helping: wage growth. According to the Bureau of Labor Statistics, average wages are up nearly 4% year over year.

As a local broker, I’m seeing more of my clients qualify for stronger financing — especially dual-income households in tech, government, or health services. And with price gains leveling, incomes are finally catching up.

What This Means for Northern VA Buyers and Sellers

If you’ve been sitting on the sidelines, this fall may be your chance to re-enter the market with renewed confidence. The trifecta of:

Lower mortgage rates
Softer price growth
Rising incomes

is giving more breathing room to buyers who were priced out just a few months ago.

Yes, affordability remains a challenge — but the pressure has eased. We’re helping clients reassess budgets, lock better rates, and even negotiate seller credits to reduce closing costs.