Say Goodbye to Rent: Latest Report Shows Home Affordability Improves!
Here's some fantastic news to kick off the year – the road to affordable homes is looking brighter than ever! According to the Mortgage Bankers Association's (MBA) Purchase Applications Payment Index (PAPI), December was like a gift that kept on giving, with the national median payment for purchase applicants dropping from $2,137 in November to a more wallet-friendly $2,055.
Why the sudden boost in affordability?
Well, it's all thanks to a cool two-month streak of falling interest rates since the peak in October 2023.
Now, let's talk numbers.
The PAPI, which measures the mortgage payment to income ratio (PIR), took a 3.8% dip in December 2023, hitting its lowest level since January 2023.
For those eyeing the more budget-friendly mortgages at the 25th percentile, the national median mortgage payment dropped from $1,425 in November to $1,375 in December.
So, what's the takeaway?
Your dream home is no longer a distant mirage – it's a tangible reality. With mortgage rates in a downward limbo and more homes up for grabs, the journey to homeownership just got a whole lot more exciting.