The current housing market presents some challenges for home buyers. High home prices, too few homes for sale, and volatile mortgage rates mean buyers have to be prepared. That means setting a budget and knowing exactly what you can afford in terms of a monthly mortgage payment. Fortunately for buyers wondering what their prospective payment might look like, the Mortgage Bankers Association tracks the median mortgage payment each month with its Purchase Applications Payment Index. The index can give buyers, not only a good idea of what the typical mortgage payment is now, but also whether or not it’s headed higher or starting to fall. According to its most recent release, the MBA says the national median payment applied for by purchase applicants was $2,162 in July – $1,451 for lower-payment mortgages. That’s virtually unchanged from the previous month, though up significantly from where it was last year at the same time. It means buyers are still facing affordability challenges but haven’t seen a summer spike when it comes to monthly mortgage costs. (source)
