Monthly Archives: November 2024

Home buyer affordability continued to improve in September, according to the Mortgage Bankers Association. The MBA’s monthly Purchase Applications Payment Index – which measures the national median mortgage payment applied for by prospective home buyers – found payments down 0.8 percent from the month before. Edward Seiler, MBA’s associate vice president, Housing Economics, and executive director, Research Institute for Housing America, says affordability is now better than it’s been in two years. “Home buyer affordability conditions improved for the fifth consecutive month, as mortgage rates … improved purchasing power for prospective buyers,” Seiler said. “Overall affordability is now at its highest level since August 2022, but the recent jump in rates will likely cause conditions to plateau.” In September, the median monthly mortgage payment fell to $2,041 from $2,057 the month before. For borrowers applying for lower-payment mortgages, payments fell to $1,369. (source)

The National Association of Realtors’ Pending Home Sales Index measures the number of contracts to buy homes signed each month. Because contract signings precede closings, the NAR’s index is considered a good future indicator of existing home sales numbers. In September, the index rose 7.4 percent to its highest level since March. Lawrence Yun, NAR’s chief economist, says the spike in signings was likely due to falling mortgage rates during the month. “Contract signings rose across all regions of the country as buyers took advantage of the combination of lower mortgage rates in late summer and more inventory choices,” Yun said. “Further gains are expected if the economy continues to add jobs, inventory levels grow, and mortgage rates hold steady.” Yun says sales should increase over the next year and beyond, as home prices and inventory levels continue to improve. (source)