The Mortgage Bankers Association’s Purchase Applications Payment Index measures monthly mortgage payments based on the amounts applied for by borrowers seeking home purchase loans. The index is scaled so that any increase indicates that mortgage payments are rising and a decline is a sign they are falling. According to the most recent release, the national index fell 0.3 percent in June. Edward Seiler, MBA’s associate vice president of housing economics and executive director of the Research Institute for Housing America, says wage growth has helped. “Affordability conditions improved slightly in June, as prospective home buyers benefited from lower application amounts despite a slight increase in mortgage rates,” Seiler said. “While affordability continues to vary across markets, steady income growth has outpaced the increase in monthly mortgage payments over the past year, providing prospective home buyers with modest relief.” The national median payment fell $7 in June to $2,191. For lower payment mortgages, payments fell to $1,522 from $1,532 in May. (source)
