03:52 PM EST, 11/19/2024 (MT Newswires) -- A decline in mortgage rates in September brought affordability for middle-income households to its highest level since February 2023, Zillow ( ZG ) (Z, ZG) reported on Tuesday.

At September's 6.18% average mortgage rate -- a two-year low -- a household earning the median US income could have comfortably afforded 27.7% of homes on the market, the highest share in 19 months. In May, when rates averaged 7.06%, they could afford 22.7% of homes for sale.

"Affordability remains the top challenge for first-time home buyers especially, and buying power can change quickly with the unpredictable nature of mortgage rates," said Orphe Divounguy, a senior economist for Zillow Home Loans.

In October, mortgage rates averaged 6.43%. With October's rate below that of October 2023, the share of listings affordable for a middle-income household was still greater last month on a year-over-year basis in all of the top 50 metro areas tracked by Zillow ( ZG ).

Much of the improvement occurred in Sun Belt markets, while large markets in California, the New York City metro area and Boston were among the least affordable, the report showed.

"While there's no guarantee, signs point to rates moving a bit lower into next year," Divounguy said. "However, the path will be bumpy, and buyers should stay ready to move forward when the time is right for them."

As of Nov. 14, rates had risen to 6.78%, according to the digital real estate broker's report.

Last week, the Mortgage Bankers Association reported that mortgage application volume rose for the first time in seven weeks through the seven days ended Nov. 8.

Price: 75.16, Change: +1.84, Percent Change: +2.51