Home affordability got even worse last month, with the average payment on new mortgages rising from the prior month.
The national median payment applied for by purchase applicants rose to $2,112 in April, up about 1% from March, according to theMeanwhile, the ratio of mortgage payments to income also rose, reflecting that national mortgage payments have increased though income has declined or stagnated. "Homebuyer affordability eroded further in April, with both the typical borrower monthly payment and median purchase amount rising due to higher rates and home prices," MBA's associate vice president Edward Seiler said in a statement on Thursday.
"Elevated interest rates and low housing supply have kept many prospective borrowers on the sidelines. However, MBA expects mortgage rates to stabilize and inventory levels to improve, which should incentivize some buyers to reenter the market."