Your mortgage payment is likely going to be among your biggest monthly bills. So, it’s important to know what to expect. That’s why the Mortgage Bankers Association tracks the national median mortgage payment each month. Its Purchase Applications Payment Index looks at the payment amounts applied for by borrowers purchasing a home and measures those against income to determine affordability conditions over time. According to the most recent results, the national median payment fell slightly in December to $2,127. Compared to year-before levels, that’s just $72 higher than it was at the end of 2023. Edward Seiler, MBA’s associate vice president, Housing Economics, and executive director, Research Institute for Housing America, says this year should be even better. “2024 was a sluggish year for home sales because of weak affordability conditions throughout the country,†Seiler said. “MBA expects 2025 conditions will improve as housing supply increases, giving prospective buyers more options and putting less pressure on their budgets.†(source)

Fannie Mae’s monthly Home Purchase Sentiment Index is based on a survey of Americans which asks for their opinions on the housing market, buying and selling a home, prices, mortgage rates, their financial situation and job. According to the most recent release, Americans were feeling slightly more optimistic in January, as the index ticked up 0.3 points from the previous month. The gains included improvement in consumer optimism toward both buying and selling a home, despite an increasing number of respondents who believe home prices and mortgage rates will rise over the next 12 months. Kim Betancourt, vice president of multifamily economics and strategic research, says Americans aren’t expecting too much change. “Consumers seem increasingly pessimistic that housing affordability conditions will improve across the board, as a growing share expects home prices, rent prices, and mortgage rates will all go up,†Betancourt said. Still, survey respondents said they feel secure in their job and report that their household income is higher than it was last year at the same time. (source)

For most of us, the decision to buy or rent is based on affordability. Whichever option is most comfortably affordable is the one we’ll choose. But which one is most affordable depends a lot on where you look. That’s why ATTOM Data Solutions’ 2025 Rental Affordability Report looks at 341 county-level housing markets to determine how much of an average American worker’s pay is required to rent vs. buy a three-bedroom property. The results show that both options are expensive these days but, in 60 percent of analyzed markets, buying was more affordable than renting. Rob Barber, ATTOM’s CEO, says homeownership is the more affordable choice but down payments can be an obstacle. “In most parts of the country, homeownership is somewhat more attainable for those who can gather the necessary resources to cover down payments that often surpass $200,000,†Barber said. Regionally, the Midwest is the most affordable place to buy, with 80 percent of counties requiring a smaller portion of average wages than renting. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week from one week earlier. Rates were down across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. The improvement led to a boost in refinance activity, though purchase application demand fell 4 percent week-over-week. Joel Kan, MBA’s vice president and deputy chief economist, says rates are now at a six-week low. “Mortgage rates moved lower last week, consistent with lower Treasury yields following the FOMC meeting and a volatile week for the stock market. The 30-year fixed-rate declined to its lowest level in six weeks …†Kan said. “Mortgage applications responded to these lower rates and were up for the week overall, driven by a 12 percent increase in refinance applications, which had their strongest week since December 2024.†The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

The housing market’s been out of balance for years. With too many interested home buyers and too few homes available to buy, prices moved higher and made it increasingly difficult for Americans to find an affordable home for sale in the areas where they’d most like to live. Fortunately, though, things have gotten better. Inventory levels improved last year and, according to new numbers from The National Association of Realtors’ consumer website, they’re off to a strong start so far this year. In fact, the number of newly listed homes increased 37.5 percent month-over-month in January, driving the number of homes actively for sale 24.6 percent higher than they were last year at the same time. Danielle Hale, the website’s chief economist, says it could be a sign of things to come. “The shift in seller activity could mark a turning point in the high mortgage rate-induced standoff between buyers and sellers,†Hale said. “The uptick is likely due to some residual benefit from fall’s lower mortgage rates, which could fade. But drivers such as the need for families to adapt to life changes and the easing of the lock-in effect, could bring more movement from sellers by year’s end.†(source)

Homeowners have had it good over the past several years and, according to ATTOM Data Solutions’ fourth quarter 2024 U.S. Home Equity & Underwater Report, they still do. The report found 47.7 percent of mortgaged residential properties in the country could be considered equity rich during the final three months of 2024. A property is equity rich when the amount owed on its mortgages is no more than half its estimated value. Rob Barber, ATTOM’s CEO, says it’s a good position to be in. “Homeowners across the country … are sitting on historically high levels of property equity thanks in large part to the endless increases in home values over more than a decade,†Barber said. “Nearly half of all residential mortgage payers in the U.S. have paid off at least half of their loans, leaving many with six-figures levels of wealth available to leverage anything from new home purchases to starting new businesses to paying off major expenses.†(source)

Budgeting is never fun. If given the choice, we’d all prefer to spend money freely and without consequence. But while it may not be as enjoyable, budgeting your money is important – especially so, when buying a house. Evidence of that can be seen in a newly released survey of homeowners. The survey found 81 percent of homeowners say their expenses are higher than they anticipated, leading 69 percent of them to have regrets about their home purchase. That’s a pretty significant share of homeowners who say owning a home is more expensive than they thought. It’s also a good bet that those homeowners were once buyers who didn’t do a thorough enough job of working out a budget and determining how much house they could comfortably afford. That means adding in costs like potential maintenance, repairs, insurance and property tax, in addition to the prospective monthly mortgage payment. Taking a real hard look at your finances and potential costs before you buy will help save you from the heartache and stress of owning a home that hurts your bottom line. (source)

When a contract to buy a home is signed, the sale isn’t yet final. But most contract signings result in closed sales a few weeks later, which is why they’re considered a good indicator of where home sales numbers may be headed. The National Association of Realtors tracks contract signings each month with its Pending Home Sales Index. According to the most recent results, the index found contract signings down in December, falling 5.5 percent month-over-month after four consecutive months of gains. Lawrence Yun, NAR’s chief economist, says the decline isn’t too surprising. “After four straight months of gains in contract signings, one step back is not welcome news, but it is not entirely surprising,†Yun said. “Economic data never moves in a straight line. High mortgage rates have not significantly dented housing demand due to greater numbers of cash transactions.†Regionally, the South saw the smallest month-over-month decline, falling just 2.7 percent, while the Midwest dropped 4.9 percent, the Northeast slipped 8.1 percent, and the West decreased 10.3 percent. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were up and down last week. Rates for 30-year fixed-rate loans with conforming balances were unchanged from one week earlier, while rates for loans backed by the Federal Housing Administration and 15-year fixed-rate loans fell. Rates for jumbo loans and 5/1 ARMs both increased. With rates relatively steady, demand for loans to buy homes was also flat, though refinance activity fell 7 percent. Joel Kan, MBA’s vice president and deputy chief economist, says there’s reason for optimism. “Purchase activity decreased slightly, but applications for FHA purchase loans were a bright spot, increasing by 2 percent,†Kan said. “New and existing-home sales ended 2024 on a strong note, and if mortgage rates continue to stabilize and for-sale inventory loosens, we expect a gradual pick up in purchase activity in the coming months.†The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

The most recent S&P Case-Shiller U.S. National Home Price Index found prices 3.8 percent higher than last year at the same time. The year-over-year gain was slightly better than the previous month’s annual increase of 3.6 percent. But despite the bump, Brian D. Luke, CFA, head of commodities, real & digital assets, says home price increases have slowed. “With the exception of pockets of above-trend performance, national home prices are trending below historical averages,†Luke said. “Markets in New York, Washington D.C., and Chicago are well above norms, with New York leading the way. Unsurprisingly, the Northeast was the fastest growing region, averaging a 6.1 percent annual gain. However, markets out west and in once red-hot Florida are trending below average growth.†Still, despite the regional disparities, S&P’s National Index managed to hit its 18^th consecutive all-time high, according to the latest numbers. (source)