For those applying for lower-payment mortgages, the median payment fell to $1,508 in May from $1,537 in April. The Builders’ Purchase Application Payment Index (BPAPI) indicated a decrease in median mortgage payments for new homes, dropping to $2,522 in May from $2,604 in April.
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The FHA loan applicants saw their median mortgage payment decrease to $1,924 in May, down from $1,955 in April but up from $1,802 in May 2023. Conventional loan applicants experienced a similar trend, with their median payment falling to $2,226 in May from $2,271 in April, though still higher than the $2,202 recorded in May 2023.
“MBA is forecasting for mortgage rates to fall closer to 6.5% by the end of the year, which, along with rising inventory levels and a subsequent slowdown in home-price growth, should help affordability amounts,” said Edward Seiler, MBA’s associate vice president of housing economics, and executive director of Research Institute for Housing America.
