Homebuyer affordability improved in September, but rising mortgage rates may hinder this trend.

In September, homebuyer affordability improved for the fifth month, driven by lower mortgage rates nearing 6%, according to the Mortgage Bankers Association (MBA). The national median payment declined to $2,041 from $2,057 in August, and the Purchase Applications Payment Index (PAPI) fell to 157.9. However, rising mortgage rates are expected to plateau this trend, with forecasts suggesting rates could reach about 6.3% by year-end.

October 31, 2024
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