Homeowner Affordability Improves in October

Affordability across the housing market improved slightly in October as mortgage rates eased to the lowest level in a year. According to housing market data provider ICE Mortgage Technology’s November 2025 ICE Mortgage Monitor Report, the U.S. Conforming 30-year Fixed Mortgage Rate Lock Index dipped to 6.17% in late October, ultimately leading to more refinancing activity. In October, the number of highly qualified refinance candidates rose to 1.7 million, the largest figure recorded since early 2022. At the same time, tappable equity grew to $11.2 trillion, with the average mortgage holder having $204,000 available to borrow.

While conditions improved for homeowners, another uptick in home prices during October served as an additional hurdle for prospective homebuyers. 

ICE Home Price Index (HPI) data shows that annual home price growth ticked up to +0.9% in October as affordability hit its best level in 2.5 years, breaking a nine-month streak of slowing appreciation. Single family homes were up +1.2% annually in October while condo prices were down 1.8% from the same time last year. Home price growth remains strongest in the Northeast and Midwest, while a recent reversal of inventory growth in parts of the South and West have begun to slow the rate of home price cooling.