The typical mortgage payment got smaller in February, according to new data from the Mortgage Bankers Association. The group’s Purchase Applications Payment Index looks at amounts applied for by borrowers and measures them over time to gauge home buyer affordability. In February, the PAPI found payments down. In fact, the national median payment fell to $2,061 from $2,070 in January.
Edward Seiler, MBA’s associate vice president of housing economics, says the improvement, while small, is encouraging. “Home buyer affordability saw a modest improvement in February, as slightly lower mortgage rates helped ease monthly payment burdens despite a small uptick in loan sizes,” Seiler says. “While affordability conditions remain challenging in many markets, these incremental gains – felt across more than half of states – are an encouraging sign for prospective buyers, particularly those seeking lower-payment options.” For borrowers applying for lower-payment mortgages, the national payment decreased to $1,431 in February.
[Source: Mortgage Bankers Association]
