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According to the Mortgage Bankers Association’s latest Purchase Applications Payment Index, U.S. homebuyer affordability was mostly unchanged in May 2022, with the national median payment applied for by applicants up slightly to $1,897 from $1,889 in April.

“The ongoing affordability hit of higher home prices and fast-rising mortgage rates led to a slowdown in purchase applications in May. While the median principal and interest payment only increased $8 from April, a typical borrower is paying $514 more through the first five months of 2022 – a jump of 37.1%,” said Edward Seiler, MBA’s Associate Vice President, Housing Economics, and Executive Director, Research Institute for Housing America. “Inflationary pressures and rates above 5 percent are both headwinds for the housing market in the coming months. MBA’s new forecast anticipates that sales of new and existing homes will fall below 2021 levels.”