“MBA expects that affordability conditions will continue to improve as mortgage rates decline, which should generate increased demand heading into the spring homebuying season,” he added.
The national PAPI declined by 2.8% to 170.9 in November while it was 175.9 in the previous month. This meant that the PAPI was now at its lowest level seen since February of this year. Median earnings increased by 3.9% year-over-year. Even if payments rose by 8.1%, the strong earnings growth meant that the PAPI was up by 4% on an annual basis.
For borrowers applying for lower-payment mortgages, the national mortgage payment decreased from $1,466 in the previous month to $1,425.
The Builders’ Purchase Application Payment Index (BPAPI) showed that there was a decrease in the median mortgage payment for purchase mortgages from MBA’s Builder Application Survey – standing at $2,672 in October and then at $2,597 in November.
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