Affordability conditions continued to improve in October, according to the Mortgage Bankers Association’s latest Purchase Applications Payment Index. The index – which measures the national median mortgage payment based on amounts applied for by borrowers – found the median payment fell month-over-month, dropping to $2,039 from $2,067 one month earlier.
Edward Seiler, MBA’s associate vice president of housing economics and executive director of the Research Institute for Housing America, says the index is now at its lowest level since 2022. “Affordability conditions have now improved for the fifth consecutive month because of lower mortgage rates, higher household earnings, and flattening home-price growth,” Seiler said. “The median purchase application payment amount in October was $88 lower than one year ago. Affordability is improving – PAPI is at its lowest level since March 2022 – and is likely to continue to as mortgage rates hold … and more supply comes onto the market.”