The national median applied by applicants is now at $2,137
Homebuyer affordability has seen improvements in November with a decrease in the national median payment applied for by purchase applicants, according to the Mortgage Bankers Association’s (MBA) Purchase Applications Payment Index (PAPI).
November saw the national median payment applied by purchase applicants drop to $2,137 from the previous month’s $2,199.
“Homebuyer affordability improved in November, with a decline in mortgage rates providing relief to prospective homebuyers,” said Edward Seiler, MBA’s associate vice president, housing economics, and executive director, Research Institute for Housing America.
“MBA expects that affordability conditions will continue to improve as mortgage rates decline, which should generate increased demand heading into the spring homebuying season,” he added.
The national PAPI declined by 2.8% to 170.9 in November while it was 175.9 in the previous month. This meant that the PAPI was now at its lowest level seen since February of this year. Median earnings increased by 3.9% year-over-year. Even if payments rose by 8.1%, the strong earnings growth meant that the PAPI was up by 4% on an annual basis.
For borrowers applying for lower-payment mortgages, the national mortgage payment decreased from $1,466 in the previous month to $1,425.
The Builders’ Purchase Application Payment Index (BPAPI) showed that there was a decrease in the median mortgage payment for purchase mortgages from MBA’s Builder Application Survey – standing at $2,672 in October and then at $2,597 in November.
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