MBA: Homebuyer Affordability Conditions Improve

Homebuyer affordability was slightly less onerous last month as the national median payment applied for by purchase loan applicants decreased to $2,167 from $2,219 in May, according to new data from the Mortgage Bankers Association (MBA). However, on a year-over-year basis the national median payment was up by $5 from one year ago.

The national median mortgage payment for conventional loan applicants in June was $2,180, down from $2,226 in May and down from $2,205 in June 2023. The national median mortgage payment for FHA loan applicants was $1,907 in June, down from $1,924 in May and up from $1,854 in June 2023.

“Homebuyer affordability conditions improved for the second straight month as declining mortgage rates continue to increase purchasing power and is enticing some borrowers back into the housing market,” said Edward Seiler, MBA’s associate vice president of housing economics and executive director of the Research Institute for Housing America. “The median loan application amount fell to $320,512 in June, indicating that home-price growth is moderating, which should boost additional activity.”