The Mortgage Bankers Association’s Purchase Applications Payment Index measures the median mortgage payment each month based on amounts applied for by prospective home buyers. According to the most recent results, payments were up in March from the month before but were lower than last year at the same time. In fact, the median payment was roughly 2-percent lower than year-before levels. Still, Edward Seiler, MBA’s associate vice president of housing economics and executive director of The Research Institute for Housing America, says affordability declined in March. “Home buyer affordability conditions declined in March, as rising mortgage rates and higher loan amounts continued to stretch household budgets,” Seiler said. “Looking ahead, while these headwinds may temper demand in the near term, improvements in housing supply and moderating home-price growth could help restore some stability to the housing market.” Fortunately, rates have moderated somewhat since March’s increases and recent market benchmarks show the spring season off to a solid start. (source)
