Mortgage Payments Have Gotten More Affordable

Buying a home has become more affordable, according to new numbers from the Mortgage Bankers Association. The MBA's Purchase Applications Payment Index – which measures how mortgage payments change from month to month – found that the median payment fell 2.9 percent at the end of last year, dropping from $1,977 in November to $1,920 in December. Edward Seiler, executive director of MBA's Research Institute for Housing America, says affordability looks like it'll continue to improve as spring approaches. “With inflation cooling slightly, MBA expects both mortgage rates and home-price growth to soften, which along with cooling inflation, should help bring more prospective buyers into the market during the spring home buying season,” Seiler said. The Index found payments for FHA loans were also down, falling to $1,602 in December from $1,631. For borrowers applying for lower-payment mortgages, payments were down to $1,279 at the end of the year.