Affordability is the top concern for anyone hoping to buy a home. That’s why the Mortgage Bankers Association tracks median mortgage payments each month through its Purchase Applications Payment Index. The index measures mortgage payments using loan data from purchase applicants and measures it across time and relative to wage growth. In April, payments rose $21 from March but are still down 1.6 percent from last year at $2,152. The national mortgage payment for lower-payment mortgages was $1,493. Edward Seiler, MBA’s associate vice president of housing economics and executive director of the Research Institute for Housing America, says better conditions may be ahead. “Housing affordability conditions weakened slightly in April, as mortgage rates edged higher and rising loan amounts pushed monthly payments up from March,” Seiler said. “However, affordability remains improved compared to a year ago, supported by lower mortgage rates and continued income growth. Looking ahead, continued income gains and some stabilization in mortgage rates could help support better affordability conditions.” (source)
