According to the Mortgage Bankers Association’s Purchase Applications Payment Index, U.S. homebuyer affordability was mostly unchanged in June 2022, with the national median payment applied for by applicants down slightly to $1,893 from $1,897 in May 2022.
“Median mortgage applications payments have held steady during the last two months but remain much higher than earlier this year. The typical homebuyer’s mortgage payment in June was $509 more than in January, which is why – along with rising economic uncertainty and high inflation – purchase demand has slowed in markets across the country,” said Edward Seiler, MBA’s Associate Vice President, Housing Economics, and Executive Director, Research Institute for Housing America.
“There are signs that home-price growth is moderating, which is good news for overall affordability if mortgage rates also start declining. The median loan amount in June was down $10,182 from May and has dropped more than $20,000 since it peaked in February.”
Added Seiler, “Sixteen states in June experienced improving affordability conditions due to lower mortgage application amounts.”
An increase in MBA’s PAPI – indicative of declining borrower affordability conditions – means that the mortgage payment to income ratio (PIR) is higher due to increasing application loan amounts, rising mortgage rates, or a decrease in earnings. A decrease in the PAPI – indicative of improving borrower affordability conditions – occurs when loan application amounts decrease, mortgage rates decrease, or earnings increase.
The national PAPI decreased 0.2 percent to 163.9 in June from 164.2 in May, meaning payments on new mortgages take up a smaller share of a typical person’s income. Compared to June 2021 (119.3), the index has jumped 37.4 percent. For borrowers applying for lower-payment mortgages (the 25th percentile), the national mortgage payment was flat at $1,241.
Source: THE WORLD PROPERTY JOURNAL
We are ready to boost your Returns With our Ideal Property management Services In Orlando or answer your inquiries Here: https://bullpropertymanagement.com/contact/