The national median payment applied for by purchase applicants dropped from $2,140 in July to $2,057 in August, a 3.9% tumble, according to new data from the Mortgage Bankers Association (MBA). On a year-over-year measurement, the median payment was down by $113, a 5.2% decrease.
The national median mortgage payment for conventional loan applicants was $2,056, down from $2,140 in July and down from $2,187 in August 2023. The national median mortgage payment for FHA loan applicants was $1,817 in August, down from $1,838 in July and down from $1,909 in August 2023.
“Homebuyer affordability conditions improved for the fourth consecutive month, with lower mortgage rates, rising incomes, and slower home-price growth giving prospective buyers’ budgets a much-needed boost,” said Edward Seiler, MBA’s associate vice president of housing economics and executive director of the Research Institute for Housing America. “MBA expects that lower mortgage rates, coupled with increasing housing inventory, will entice additional homebuyers to enter the housing market.”
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