Affording a home got easier in August, according to newly released numbers from the Mortgage Bankers Association. The MBA's monthly Purchase Applications Payment Index measures the national median mortgage payment applied for by home buyers and, in August, the index found payments fell. In fact, the median payment was down nearly 4 percent from the previous month, bringing it to $2,057 from $2,140 the month before. The improvement continues a trend.
“Home buyer affordability conditions improved for the fourth consecutive month, with lower mortgage rates, rising incomes, and slower home-price growth giving prospective buyers' budgets a much-needed boost,” Edward Seiler, MBA's associate vice president, Housing Economics, and executive director of the Research Institute for Housing America, said. “MBA expects that lower mortgage rates, coupled with increasing housing inventory, will entice additional home buyers to enter the housing market.” For borrowers applying for lower-payment mortgages, the national payment fell to $1,388 from $1,444.
[Source: MBA]
