Homebuyer affordability improved for the fifth straight month in October, according to the Mortgage Bankers Association’s Purchase Applications Payment Index (PAPI). The national median mortgage payment requested by buyers dropped to $2,039, down from $2,067 in September and $88 lower than a year ago.
MBA attributes this trend to lower mortgage rates, higher household incomes, and flattening home-price growth. The PAPI fell 1.6% to 152.0, its lowest level since March 2022, signaling better affordability. Earnings growth also boosted affordability by 5.5% year over year.
Borrowers seeking lower-cost mortgages saw payments dip to $1,402, and FHA and conventional loan applicants both experienced slight declines in typical payments.
With affordability increasing and homes forecasted to continue to appreciate the housing market continues to be a healthy investment.
Source : Homebuyer affordability improves for fifth straight month