First American’s Real House Price Index showed buying power rising as income growth and lower rates outpaced near‑flat price gains, echoing broader data on stabilizing prices and higher inventory in parts of the country.
At the same time, average 30‑year rates dipped below 6% in late February 2026 for the first time since 2022, offering buyers a rare affordability tailwind heading into spring.
Budgets outpaced sticky asking prices
“Spring break may be arriving a little early for home buyers this year,” Williamson said.
“Late last year, house-buying power surpassed the national median list price for the first time in more than three years, which could support a more vibrant spring home-buying season than in recent years, as more homes fall within buyers’ budgets.”
For most households, the decision to buy hinged less on the asking price and more on whether the monthly mortgage payment fit within their budget, a calculation driven by overall house-buying power
