MBA Chart of the Week: Selected Indexes of Housing Costs

The monthly cost burden of purchasing a new home, as interest rates and house prices rose precipitously in 2022, continued in the first few months of 2023. For example, MBA’s Purchase Applications Payment Index (PAPI), hit a new high in May. Since then, despite 30-year mortgage interest rates eclipsing 7%, the index has come down slightly as median loan application amounts moderated. We are, however, still in record territory as shown by the solid green line in this week’s chart.

MBA Chart of the Week: New Home Purchase Applications

Purchase activity for newly built homes has outperformed existing home purchases for most of 2023. The lack of existing home inventory has been due to low mortgage rates in 2020 and 2021 that are keeping current homeowners from listing their homes.

MBA Chart of the Week: New Home Purchase Applications

Purchase activity for newly built homes has outperformed existing home purchases for most of 2023. The lack of existing home inventory has been due to low mortgage rates in 2020 and 2021 that are keeping current homeowners from listing their homes.