One question that you might get, or a comment that you might get about the market is everybody's talking about home prices being very high.

They might say, "You know, I don't think I'm going to enter the market because the prices are so high. Or I don't think this is sustainable, that these prices are so high."

And home prices have gone up over the last couple of years. But another measurement to take a look at when we're analyzing the market is something called affordability. It's actually something that's tracked by the National Association of REALTORS.

Affordability is key because it takes into account several key factors.

1. Your income — the median income of families across the country.

2. It takes into account the median interest rate being paid by mortgage borrowers across the country

3. And median pricing

When you combine those three factors, you fid affordability is better than it's been in decades.

Now, how could that...

Affordability is on the tip of everybody's tongues right now.

Why is affordability so important?

Well, it's a measurement of how affordable it is for the average person in America to own a home.

NAR has studied this every single month and they gave us a Home Affordability Graph. And you might expect this, but home affordability has actually been going up because of something substantial, which is interest rates going down.

As interest rates go down, affordability goes up.

That's despite the fact that we've had actually super fast rising prices, right? Prices starting to go into double digit territory across the country. And then we see interest rates going down, which pushes affordability up.

But because home prices have gotten so high recently, that's actually starting to level off and come back down. But we recently had another upswing. So we're measuring a few things when we look at affordability.

When NAR looks at...