In recent weeks, as mortgage rates closed in on 7%, affordability has worsened.
Nationally, it takes about 36% of the median household income to make the average mortgage payment — more than the recommended 30% allowance for housing.
The Mortgage Credit Availability Index fell by 3.1% to 96.5 in May, the lowest level since January 2013, and was essentially unchanged in June.
The MBA index that tracks jumbo loans — loans that are larger than conforming loan limits — saw its second monthly contraction, as some financial institutions reduce their appetite for larger loans that aren’t backed by the government.
Mortgage rates are expected to drop the second half of this year as inflation continues to cool, with economists and housing analysts forecasting rates to end the year around 6%.
Persons:
Nick Gaylord, “ I’ve, ” Gaylord, it’s, “ I’m, ”, Gaylord, “, Black Knight, Knight, ” Joel Kan, Department of Veterans Affairs —, —
Organizations:
DC CNN, CNN, Mortgage Bankers Association, ICE Mortgage Technology, Federal Housing Administration, US Department of Agriculture, Department of Veterans Affairs, National Association of Realtors
Locations:
Washington, Minneapolis