Wages Are Now Growing Faster Than Typical Mortgage Payments

As home price appreciation continues to weaken and mortgage rates lower, wages are now rising quicker than the typical mortgage payment. According to real estate marketing platform Redfin, wages have increased by 4.1% year-over-year, while mortgage-payment growth has slowed to just 0.2%.

Wages have been rising faster than mortgage payments since February 2025, primarily due to slow home-price growth and dips in mortgage rates. Mortgage rates have been steadily declining since May, recently falling to 6.25%. While this rate is elevated compared with pre-pandemic housing boom figures, it is the lowest level in the past year.

With the drop in rates, buyers have been given much more purchasing power. As of July, the median monthly mortgage payment was $3,192, which was down from $3,239 just one month earlier.

“It’s encouraging that wages are growing faster than housing costs because it gives homebuyers and renters a bit more breathing room,” said Chen Zhao, Redfin’s head of economic research. “But today’s relief doesn’t erase yesterday’s struggles. Years of rapid home price growth during and after the pandemic pushed homeownership out of reach for many American families, and we’re still working to close the gap.”