These Wisconsin cities are among the best for first-time homebuyers

article

File photo of houses.  (FOX 9)

(FOX 9) - Wisconsin has some of the best cities for first-time homebuyers, studies show. 

Wisconsin's best cities for first-time homebuyers

SmartAsset ranking:

SmartAsset ranked 180 of the largest U.S. metro areas based on a variety of factors that could influence the buying process and long-term payoff for first-time homebuyers. 

These metrics included affordability relative to local median incomes, the level of housing inventory and demand for that inventory, projections of home-price growth and the relative population of residents in their 20s and 30s.

Appleton, Wisconsin, ranked fifth in the study, with the median house sale price being $296,011. Eau Claire, Wisconsin, ranked 13th, with the median house sale price being $259,763. 

To see SmartAsset's full ranking, click here.

WalletHub ranking:

WalletHub compared 300 cities based on 22 factors, including market attractiveness, affordability and quality of life. WalletHub’s dataset ranges from cost of living to real-estate taxes to property-crime rates.

Green Bay ranked 12th, Kenosha ranked 19th and Madison ranked 20th. 

To see WalletHub's full ranking, click here.

Mortgage rates on the rise

Why you should care:

The average rate on a 30-year U.S. mortgage edged up early this month, ending a five-week decline in borrowing costs for homebuyers.

The long-term rate ticked up to 6.72% from 6.67% last week, mortgage buyer Freddie Mac told The Associated Press. A year ago, the rate averaged 6.89%.

High mortgage rates can add hundreds of dollars a month in costs for borrowers and reduce their purchasing power. That’s helped keep the U.S. housing market in a sales slump that dates back to 2022, when mortgage rates began to climb from the rock-bottom lows they reached during the pandemic.

Last year, sales of previously occupied U.S. homes sank to their lowest level in nearly 30 years. They’ve remained sluggish so far this year, as many prospective homebuyers have been discouraged by elevated mortgage rates and home prices that have continued to climb.

What's next:

Economists generally expect mortgage rates to stay relatively stable in the coming months, with forecasts calling for the average rate on a 30-year mortgage to remain in a range between 6% and 7% this year.

"Mortgage rates may come down modestly over the coming months but other economic headwinds — including the impact of tariffs on the prices of consumer goods, weaker labor market conditions and rising consumer debt — could be what continue to hold the housing market in the second half of 2025," said Lisa Sturtevant, chief economist at Bright MLS.