If you’re a prospective home buyer who is concerned about affordability levels, the Mortgage Bankers Association has some good news for you. Its monthly Purchase Applications Payment Index – which measures the typical mortgage payment based on loan amounts applied for by borrowers – found mortgage payments fell to start the spring. In fact, the typical payment decreased to $2,173 in March, down from $2,205 the month before. For borrowers applying for lower-payment mortgages, payments fell to $1,499. Edward Seiler, MBA’s associate vice president, Housing Economics, and executive director, Research Institute for Housing America, says the improvement was due to lower mortgage rates. “Home buyer affordability conditions improved slightly in March, as lower mortgage rates spurred renewed activity in the housing market,” Seiler said. “Despite improving conditions in March, the outlook in the upcoming months is cloudier.” Seiler says economic uncertainty is making home buyers more hesitant and could affect conditions in the months ahead. (source)
