Data: Mortgage Application Payments Decreased In February

Homebuyer affordability improved in February, with the national median payment applied for by purchase applicants decreasing to $2,061 from $2,070 in January. This is according to the Mortgage Bankers Association’s (MBA) Purchase Applications Payment Index (PAPI), which measures how new monthly mortgage payments vary across time – relative to income – using data from MBA’s Weekly Applications Survey (WAS).

“Homebuyer affordability saw a modest improvement in February, as slightly lower mortgage rates helped ease monthly payment burdens despite a small uptick in loan sizes. The February PAPI declined over the month and is nearly 10 percent lower than a year ago, reflecting both reduced payments and steady income growth,” said Edward Seiler, MBA’s Associate Vice President of Housing Economics and Executive Director of the Research Institute for Housing America. “While affordability conditions remain challenging in many markets, these incremental gains — felt across more than half of states — are an encouraging sign for prospective buyers, particularly those seeking lower-payment options.”

Added Seiler, “Unfortunately, this month’s turmoil in the Middle East has put upward pressure on mortgage rates, which in turn could impact overall affordability in the months ahead.”

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 decreased 0.4 percent to 150.0 in February from 150.6 in January. While payments decreased 6.5 percent, earnings growth of 3.7 percent means that the PAPI is down (affordability is higher) 9.9 percent on an annual basis. For borrowers applying for lower-payment mortgages (the 25th percentile), the national mortgage payment decreased to $1,436 in February from $1,445 in January.

The Builders’ Purchase Application Payment Index (BPAPI) showed that the median mortgage payment for purchase mortgages from MBA’s Builder Application Survey decreased to $2,157 in February from $2,161 in January.

Additional Key Findings of MBA’s Purchase Applications Payment Index (PAPI) – February 2026

  *   The national median mortgage payment was $2,061 in February 2026—down $9 from January. It was down by $144 from one year ago, equal to a 6.5% decrease.
  *   The national median mortgage payment for FHA loan applicants was $1,763 in February, down from $1,782 in January and down from $1,907 in February 2025.
  *   The national median mortgage payment for conventional loan applicants was $2,089, up from $2,081 in January and down from $2,226 in February 2025.
  *   The top five states with the highest PAPI were: Idaho (235.4), Nevada (225.7), Rhode Island (204.2), Arizona (199.5), and Utah (192.2).
  *   The top five states with the lowest PAPI were: D.C. (109.5), Louisiana (109.9), Connecticut (114.6), Alaska (116.2), and Iowa (121.3).
  *   Homebuyer affordability increased for Black households, with the national PAPI decreasing from 155.7 in January to 155.0 in February.
  *   Homebuyer affordability increased for Hispanic households, with the national PAPI decreasing from 142.8 in January to 142.2 in February.
  *   Homebuyer affordability increased for White households, with the national PAPI decreasing from 152.3 in January to 151.7 in February.