Mortgage Payments Are Becoming More Affordable

Prospective home buyers who’ve been waiting for affordability conditions to improve may be in luck. According to the latest Purchase Applications Payment Index from the Mortgage Bankers Association, the typical mortgage payment applied for by borrowers in July was 1.3 percent lower than the previous month. In fact, the national median payment fell to $2,140 – with payments for lower-payment mortgages down to $1,444. Edward Seiler, MBA’s associate vice president, housing economics, and executive director, Research Institute for Housing America, says it was the third consecutive month payments fell. “Home buyer affordability conditions improved for the third consecutive month as rates … and rising housing inventory continue to bode well for prospective home buyers,” Seiler said. “MBA is expecting that slower home-price appreciation, coupled with lower rates, will ease affordability constraints and lead to increased activity in the housing market.” In other words, things are looking better for home buyers, as conditions continue to trend in a more balanced direction. (source)

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