"For borrowers applying for lower-payment mortgages, at the 25th percentile, the national payment fell to $1,402, down from $1,418 the previous month. The national median mortgage payment in October was $2,039, down $28 from September and $88 lower than a year earlier. Federal Housing Administration (FHA) borrowers saw their median monthly payment dip slightly to $1,789, compared to $1,792 in September and $1,842 in October 2024."
"An increase in MBA's PAPI indicates declining borrower affordability conditions, and that the mortgage payment-to-income ratio is higher due to increasing application loan amounts, rising mortgage rates or a decrease in earnings. Conversely, a decrease in the PAPI indicates improving borrower affordability conditions and occurs when loan application amounts decrease, mortgage rates decrease or earnings increase. The national PAPI fell 1.6% to a reading of 152.0 in October, down from 155.0 in September, reflecting a 4.2% drop in typical mortgage payments."
Improved housing affordability resulted from lower mortgage rates, higher household earnings, and flattening home-price growth, which reduced typical mortgage payments. The national Payment-to-Income Affordability Index (PAPI) fell 1.6% to 152.0 in October, reflecting a 4.2% decline in typical mortgage payments and a 5.5% annual boost to affordability from earnings growth. The national median mortgage payment was $2,039 in October, down $28 month-over-month and $88 year-over-year. At the 25th percentile, payments fell to $1,402. FHA median payments dipped to $1,789, while conventional median payments were $2,063. Least affordable states included Idaho, Nevada, Rhode Island, Arizona and Tennessee; Louisiana ranked among the most affordable.
Read at www.housingwire.com
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