Softening housing market metrics made mortgages a little more palatable for homebuyers in November, according to the Mortgage Bankers Association's latest report.
The national median obligation for purchase applications was $1,977 in November, a 1.8% drop from the $2,012 figure
"MBA expects both mortgage rates and home-price growth to moderate, which may encourage additional buyers to return to the housing market in the coming months," he said in a press release.
But prospective borrowers still face elevated pricing. The median purchase application rose by $2,444 from the month before to $297,444, Seiler said. However, that's far below the $340,000 peak reached in February. Overall, mortgage payments jumped 42.9%,or by $594, since January.
The PAPI metric also fell 1.8% in November to 164.7, but still sits at its second-highest level since July 2009, the MBA said. The figure has climbed 33.4% since January. The index measures new monthly mortgage payments relative to income, using data
The index decreased slightly for Black, HIspanic and White households in November, indicating widespread affordability gains. National mortgage payment medians also dipped slightly for Federal Housing Administration and lower-payment mortgage applicants, sitting at $1,631 and $1,289 in November, respectively.
Conventional loan applicants saw a larger gain in affordability in November, with their median mortgage payment dropping to $1,994 from $2,047 in October. The figure however was far higher than the $1,444 amount last November.
