Homebuyers got some relief last month as they found themselves with slightly lower mortgage payments.
The Mortgage Bankers Association's Purchase Applications Payment Index fell 1.8% month-to-month, an indication that borrowers are finding their mortgages more affordable. The index measures borrower affordability by looking at new monthly mortgage payments relative to income; a decline signifies that mortgages have become more affordable for homeowners while an increase signifies that they've become less affordable.
"Affordability conditions improved in June, a positive sign for prospective homebuyers looking to take advantage of slightly lower mortgage rates and moderating home prices," said Edward Seiler, MBA's associate vice president of housing economics, in a statement.
This came in part from a dip in the national median mortgage payment, which dropped slightly to $2,172 in June from $2,211 in May, though it was up 0.2% from a year ago. This is the lowest median mortgage payment this year, down 1.5% from January. The median mortgage payment for FHA loan applicants was $1,881, down 2.4% from last month, while the median payment for conventional loans was $2,205, down 1.34% from May.
In a press release about the findings, Seiler pointed to falling home prices and rising supply as reasons to be optimistic about the coming months.
"The median purchase application amount decreased to $324,800, and we expect that home-price growth will continue to stabilize as more inventory comes onto the market in many parts of the country," he said.
Other data adds to the sense that the housing market is slowing in many regions of the country. Redfin's latest report shows home prices edging down in major cities, especially in the West and South, where
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