WASHINGTON--Homebuyer affordability declined further in May, with the national median payment applied for by purchase applicants increasing to $2,211 from $2,186 in April, the Mortgage Bankers Association reported.
The MBA Purchase Applications Payment Index (PAPI) measures how new monthly mortgage payments vary across time – relative to income – using data from MBA’s Weekly Applications Survey (WAS).
“Homebuyer affordability declined in May as mortgage rates near 7 percent continued to put upward pressure on prospective homebuyers’ budgets,” said Edward Seiler, MBA’s associate VP of Housing Economics, and Executive Director, Research Institute for Housing America. “Despite current affordability constraints, many homebuyers are still eager to enter the housing market. Rising inventory levels and moderating home-price growth have both been bright spots during this year’s spring homebuying season.”
An increase in MBA’s PAPI – indicative of declining borrower affordability conditions – means that the mortgage payment to income ratio (PIR) is higher due to increasing application loan amounts, rising mortgage rates, or a decrease in earnings. A decrease in the PAPI – indicative of improving borrower affordability conditions – occurs when loan application amounts decrease, mortgage rates decrease, or earnings increase.
The national PAPI increased 1.0 percent to 164.9 in May from 163.0 in April. Median earnings were up 5.8 percent compared to one year ago, and while payments decreased 0.4 percent, the significant earnings growth means that the PAPI is down (affordability is higher) 5.8 percent on an annual basis. For borrowers applying for lower-payment mortgages (the 25th percentile), the national mortgage payment increased to $1,512 in May from $1,497 in April., MBA said.
The Builders’ Purchase Application Payment Index (BPAPI) showed that the median mortgage payment for purchase mortgages from MBA’s Builder Application Survey increased to $2,328 in May from $2,306 in April.
Additional Key Findings of MBA's Purchase Applications Payment Index (PAPI) – May 2025:
- The national median mortgage payment was $2,211 in May 2025—up $25 from April. It is down by $8 from one year ago, equal to a 0.4% decrease.
- The national median mortgage payment for FHA loan applicants was $1,927 in May, up from $1,895 in April and up from $1,924 in May 2024.
- The national median mortgage payment for conventional loan applicants was $2,235, up from $2,206 in April and up from $2,226 in May 2024.
- The top five states with the highest PAPI were: Idaho (260.4), Nevada (247.5), Arizona (224.9), Rhode Island (215.9), and Utah (207.9).
- The top five states with the lowest PAPI were: Louisiana (119.6), Connecticut (132.9), Alaska (133.6), New York (134.4), and Iowa (135.8).
- Homebuyer affordability decreased for Black households, with the national PAPI increasing from 160.7 in April to 162.6 in May.
- Homebuyer affordability decreased for Hispanic households, with the national PAPI increasing from 154.5 in April to 156.2 in May.
- Homebuyer affordability decreased for White households, with the national PAPI increasing from 164.7 in April to 166.5 in May.