Each month, the Mortgage Bankers Association tracks the national median mortgage payment. Its Purchase Applications Payment Index looks at the prospective payments of home buyers applying for loans to determine whether affordability is improving or worsening. According to its most recent release, mortgage payments are falling. In fact, the median payment fell to $2,055 at the end of last year, down from $2,137 in November. Edward Seiler, MBA’s associate vice president, housing economics, and executive director, Research Institute for Housing America, says affordability should only get better as conditions improve. “Home buyer affordability improved for the second consecutive month in December as interest rates declined significantly from recent highs,” Seiler said. “While the average median purchase application amount increased to $306,450, MBA expects that affordability conditions will continue to improve as mortgage rates fall further and as housing inventory continues to increase.” (source)
