Affordability slips again as mortgage application payments rise nearly 9%

Source: Scotsman Guide — 

Homebuyer affordability continued to erode in April, with the Mortgage Bankers Association (MBA) reporting that the national median payment applied for by mortgage seekers rose to $1,889.

That’s up 8.8% from the $1,736 figure in March and up 43.1% compared to April 2021, according to the MBA data. The increase correlates with a rise in the MBA’s Purchase Applications Payment Index, which rose 7.8% month over month and 27% year over year in April to a reading of 162.7. Increases in this index indicate that the typical mortgage payment-to-income ratio for borrowers is higher, due to factors such as rising application loan amounts, higher mortgage rates or lower earnings. Conversely, decreases in the index signal improving affordability.