The typical monthly mortgage payment applied for by borrowers spiked in January. In fact, according to the Mortgage Bankers Association’s Purchase Applications Payment Index – which tracks payment amounts – the median payment rose to $2,205 from $2,127 the month before. But even after the month-over-month jump, the MBA’s index shows payments just $71 higher than last year at the same time. Edward Seiler, MBA’s associate vice president, housing economics, and executive director, Research Institute for Housing America, says the MBA expects improvement this year, despite affordability challenges. “Home buyer affordability conditions declined further in January as volatile mortgage rates and high home prices continue to impact many prospective buyers’ purchasing power,” Seiler said. “Even with persisting affordability challenges, MBA is forecasting a small increase in purchase originations in 2025, with activity increasing 16 percent to $2.1 trillion.” (source)
