There are a lot of numbers to keep track of when you’re a home buyer trying to figure out how much you can afford. There’s the price of the home, your prospective mortgage rate, your down payment, closing costs, and moving expenses. It can be dizzying. In the end, though, after all the upfront costs are paid for, what you’ll be left with is your monthly mortgage payment. So how much can you expect to pay each month after the dust settles? Well the Mortgage Bankers Association tracks median mortgage payments with their monthly Purchase Applications Payment Index. It’s a good gauge of what today’s buyers are paying each month. According to the most recent results, payments have gotten slightly more affordable. In fact, the median payment in September fell to $2,155 from $2,170 in August. Similarly, borrowers applying for lower-payment mortgages also saw improvement, with payments decreasing to $1,437 from $1,444. Edward Seiler, MBA’s associate vice president of housing economics and executive director of the Research Institute for Housing America, says more improvement may be on the way. “Challenges remain as 2023 comes to an end, but MBA is forecasting for a slight rebound in originations and a moderation in mortgage rates in 2024,” Seiler said. (source)
