The national median payment applied for by purchase applicants during July was $2,140, down from $2,167 in June, according to new data from the Mortgage Bankers Association (MBA). Year-over-year, the payment level is down by $22.
The national median mortgage payment for conventional loan applicants was $2,180, down from $2,140 in June and down from $2,197 in July 2023. The national median mortgage payment for FHA loan applicants was $1,838 in July, down from $1,907 in June and down from $1,854 in July 2023.
MBA’s national mortgage payment to rent ratio decreased from 1.50 at the end of the first quarter to 1.46 at the end of the second quarter, meaning mortgage payments for home purchases have increased relative to rents.
“Homebuyer affordability conditions improved for the third consecutive month as rates below 7% and rising housing inventory continue to bode well for prospective homebuyers,” said Edward Seiler, MBA’s associate vice president of housing economics and executive director of the Research Institute for Housing America. “MBA is expecting that slower home price appreciation, coupled with lower rates, will ease affordability constraints and lead to increased activity in the housing market.”
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