Each month, the Mortgage Bankers Association’s Purchase Applications Payment Index tracks the typical monthly mortgage payment applied for by borrowers applying for a loan. According to the most recent results, payments were up in September. In fact, the typical payment increased to $2,215 from $2,162 in August. Edward Seiler, MBA’s associate vice president of housing economics and executive director of the Research Institute for Housing America, says rising mortgage rates were behind the increase. “Home buyer affordability worsened in September as mortgage rates increased 30 basis points, pushing the median monthly mortgage payment $53 higher to $2,215,” Seiler said. “Despite a slight decline in the median loan amount, higher mortgage rates drove monthly payments upward, with affordability deteriorating in 39 states.” Year-over-year, the median mortgage payment is now $148 higher than last year. For lower-payment mortgages, the national payment rose to $1,525 in September. (source)
