Home buyers got a bit of a break in May, according to new numbers from the Mortgage Bankers Association. The MBA tracks mortgage payments each month with its Purchase Applications Payment Index – which measures mortgage payments relative to income. In May, the index fell 1.6 percent, indicating affordability improved. In fact, the national median mortgage payment fell to $2,219 from $2,256 the month before. For borrowers applying for lower-payment mortgages, the median payment fell to $1,508.
Edward Seiler, MBA's associate vice president, housing economics, and executive director, Research Institute for Housing America, says mortgage rates calmed in May after spiking in April. “Home buyer affordability conditions improved in May as slightly lower mortgage rates and an uptick in housing inventory slightly eased the recent rise in application payment amounts,” Seiler said. The MBA is forecasting further affordability improvement as the year goes on, with lower rates and slowing home-price growth in the months ahead.
[Source: MBA]
