Zillow 2025: Mortgage Rate Drops Needed for Affordability by City

A Zillow report (2025) finds that for median-income families, U.S. mortgage rates would need to fall by more than 4 percentage points to make the typical home affordable, assuming a 20% down payment and a monthly payment not exceeding 30% of median household income. With the current average 30-year fixed rate at 6.11%, affordability varies by market. In New York, LA, and Miami, even 0% rates would leave housing unaffordable; in Boston and Seattle, rates would need to be below 1% for affordability. In Dallas, New Orleans, and Nashville, a drop of over 2 percentage points would be necessary. In contrast, Pittsburgh remains affordable with rates up to 9% ($231,518 median home price), Birmingham with 7.62% ($132,725), and Detroit with 7.02% ($76,340).