Homebuying Conditions Improve in August as Monthly Payments Decline

Homebuying conditions improved slightly in August as the national median mortgage payment declined slightly. According to the Mortgage Bankers Association’s Purchase Applications Payment Index, the national median payment applied for by mortgage purchase applicants decreased from $2,127 to $2,100 in August. However, the median payment in August was still up by $43, or 2.1% year-over-year. Even so, median earnings grew by 3.2% compared with the same time last year, helping to balance out the cost increase.

“Affordability conditions have improved for four straight months, with lower mortgage rates and stronger income growth boosting prospective buyers’ purchasing power,” said Edward Seiler, MBA’s Associate Vice President, Housing Economics, and Executive Director, Research Institute for Housing America. “MBA is expecting that moderating home-price appreciation, coupled with lower rates, will continue to ease affordability constraints and help to boost activity in the housing market.”