New data from the Mortgage Bankers Association shows the national median mortgage payment fell this summer, dropping from $2,191 in June to $2,175 in July. The improvement came despite rising mortgage rates, according to the group’s Purchase Applications Payment Index, which measures payments based on loan amounts applied for by borrowers. Edward Seiler, MBA’s associate vice president of housing economics and executive director of the Research Institute for Housing America, says affordability has improved. “Home buyer affordability improved in July, as a decline in the median loan amount offset a modest increase in mortgage rates, bringing the typical mortgage payment down … Affordability also improved on an annual basis, as earnings growth continued to outpace the increase in mortgage payments,” Seiler said. “Looking ahead, we expect affordability conditions to remain closely tied to the path of mortgage rates and home price growth.” For borrowers applying for lower-payment mortgages, the national payment fell to $1,512 in July. (source)
