“Homebuyer affordability conditions declined in January, with higher home prices pushing loan amounts upward and ultimately offsetting a monthly decline in mortgage rates,” said Edward Seiler, associate vice president of housing economics at MBA. “Mortgage rates have risen throughout February and will likely continue to hamper affordability and prospective homebuyers’ ability to buy heading into spring.”
On a brighter note, the Builders’ Purchase Application Payment Index (BPAPI) showed a small drop in the median mortgage payments for new home purchases, down to $2,501 in January from $2,541 in December.
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The MBA’s data also revealed that the national mortgage payment to rent ratio (MPRR) fell from 1.47 in the third quarter to 1.40 by the end of the fourth quarter, suggesting that mortgage payments have become more affordable relative to rents. The Census Bureau’s data showed a slight quarterly increase in the national median asking rent to $1,465 in the fourth quarter.
Other key findings from the MBA’s January 2024 PAPI report include:
Source: mpamag.com