Buyers Can Afford More Home Than They Could a Year Ago—Here’s What That Means in DFW
About a year ago, many buyers here in Dallas–Fort Worth ran the numbers…and didn’t love what they saw.
Mortgage rates were pushing close to 7%. Monthly payments felt heavy. And a lot of people stepped back to wait and see what would happen.
Today, those numbers look different.
According to Zillow, a median-income household can now afford about $30,000 more home than they could a year ago. The main reason is simple: mortgage rates have eased. Last winter they were hovering near 7%. Recently they’ve been closer to 6%, even briefly dipping just under that mark.
That shift may not sound dramatic, but in real life it can change what a buyer qualifies for—and what their monthly payment looks like.
And here in DFW, the real question isn’t what’s happening nationally. The real question is what this means for your budget, your timeline, and the neighborhoods you’ve been watching.
Let’s take a look.
You May Qualify for More Than You Think
If you looked at homes in North Texas last year and felt boxed in by your budget, it may be worth running those numbers again.
Mortgage rates averaged around 6.9% in early 2025. Recently they’ve been closer to about 6%.
That difference alone can expand what many buyers qualify for.
For example, with a $3,000 monthly housing budget:
• At 5.99%, buyers can afford roughly a $479,750 home
• At 6.2%, that same budget buys around $471,750
• At 6.9%, it buys about $446,000
That’s about $33,000 more purchasing power than a year ago—and even an $8,000 difference compared to just a few weeks earlier.
(Example assumes 20% down, 30-year mortgage, ~1.25% property tax, ~0.5% homeowners insurance, and no HOA.)
Of course, those are just sample numbers.
The only way to know what it means for you is to run the math using today’s interest rates, today’s home prices in Dallas–Fort Worth, and your current income.
What This Means for Buyers in DFW
If you pressed pause on buying over the past year, this may be a good moment to take another look.
Nationally, buyers now need about $111,000 in income to afford the typical home—about 4% less than last year. Affordability has improved in many major markets as mortgage rates have eased and home price growth has slowed.
If rates stay around 6% or lower, that trend could continue.
Here in DFW, that could mean a few practical opportunities:
• Revisiting what you qualify for at today’s rates
• Expanding your search into neighborhoods that were slightly out of reach before
• Watching homes that have been sitting on the market longer and may offer negotiation room
For current homeowners, it could also mean exploring whether refinancing might reduce a monthly payment.
The Goal Isn’t to Stretch—It’s to Be Smart
Here’s the most important part of this conversation.
You don’t have to rush into a decision. And you definitely don’t want to stretch your budget to the point where owning a home becomes stressful.
Being house-poor is never the goal.
The goal is simple: clear numbers and a thoughtful plan.
Right now, the market is in a place we haven’t seen in a while—rates easing while price growth slows. That combination can quietly open doors for buyers who were feeling stuck before.
If you’re wondering what you can realistically afford in, the smartest first step is simply running the numbers based on:
• today’s mortgage rates
• current home prices
• your real monthly budget
Once you have that clarity, your next step becomes much easier to decide.
And that’s always better than guessing.