Mortgage payments were more affordable in July, according to new data from the Mortgage Bankers Association. The group’s monthly Purchase Applications Payment Index, which measures payments relative to income, found the national median mortgage payment applied for by prospective home buyers fell to $2,127 in July from $2,172 in June. Edward Seiler, MBA’s associate vice president, housing economics, and executive director, Research Institute for Housing America, says mortgage rates are still elevated but purchase power is rebounding. “Affordability conditions have now improved for two consecutive months, the result of lower mortgage rates and continued strong income growth,” Seiler said. “While still elevated, [mortgage rates], continued income growth, and softening home-price gains should boost prospective buyers’ purchasing power in the months ahead.” For borrowers applying for lower-payment mortgages, the national mortgage payment fell to $1,468 from $1,500 one month earlier. (source)
