Home›Real Estate›Mortgages›Mortgage affordability improves slightly in June as me…

Mortgage affordability improves slightly in June as median payment falls

MBA said the national median monthly payment for new purchase applications dropped to $2,191, helped by lower application loan amounts despite higher mortgage rates.

Reported · Written up by our desk · Mortgages

Mortgage affordability for homebuyers improved slightly in June, as the national median monthly payment on new purchase mortgage applications declined to $2,191, according to the Mortgage Bankers Association (MBA) Purchase Applications Payment Index. HousingWire reports the national PAPI fell 0.3% to a reading of 157.9 in June, down from 158.4 in May. MBA said household earnings grew 4.6% year over year, and that lower application loan amounts offset rises in mortgage rates, pulling the median payment down by $7 from May.

For borrowers at the 25th percentile seeking lower-payment loans, the national median payment fell to $1,522 in June, down from $1,532 in May. MBA also said the index sits 3.5% lower on an annual basis, indicating mortgage payments are consuming a smaller share of income than a year ago even though payments remain historically elevated.

Affordability pressures remained most acute in Western markets, with the highest state-level PAPI readings in Idaho (251.2), Nevada (230.4), Arizona (209.7), Rhode Island (208.7), and Utah (195.8). The lowest readings were in Louisiana (119.6), Washington, D.C. (122.0), Vermont (126.7), New York (128.1), and West Virginia (129.3).

More like this

Sources