Homebuyer Affordability Declined In May
Homebuyer affordability declined in May, with the national median payment applied for by purchase applicants increasing to $2,198 from $2,152 in April. 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).
“Affordability conditions weakened in May, as rising mortgage rates, combined with increasing loan application amounts, drove mortgage payments higher,” said Edward Seiler, MBA’s Associate Vice President of Housing Economics and Executive Director of the Research Institute for Housing America (RIHA). “The decrease in affordability was widespread, with conditions declining in 33 states. While affordability conditions remain improved compared to a year ago, the monthly increase underscores how sensitive prospective homebuyers remain to changes in interest rates and home prices.”
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 (Figure 1) increased 2.2 percent to 159.4 in May from 156.0 in April. While payments decreased 0.6 percent, earnings growth of 4.0 percent means that the PAPI is down (affordability is higher) 4.4 percent on an annual basis. For borrowers applying for lower-payment mortgages (the 25th percentile), the national mortgage payment increased to $1,532 in May from $1,493 in April.
The Builders’ Purchase Application Payment Index (BPAPI) showed that the median mortgage payment for purchase mortgages from MBA’s Builder Application Survey decreased to $2,173 in May from $2,188 in April.
Additional Key Findings of MBA’s Purchase Applications Payment Index (PAPI) – May 2026
* The national median mortgage payment was $2,198 in May 2026—up $46 from April. It was down by $13 from one year ago, equal to a 0.6% decrease.
* The national median mortgage payment for FHA loan applicants was $1,873 in May, up from $1,829 in April and down from $1,927 in May 2025.
* The national median mortgage payment for conventional loan applicants was $2,211, up from $2,166 in April and down from $2,235 in May 2025.
* The top five states with the highest PAPI were: Idaho (254.1), Nevada (231.5), Rhode Island (213.1), Arizona (209.1), and Florida (200.4).
* The top five states with the lowest PAPI were: Louisiana (121.7), D.C. (123.1), Connecticut (124.9), Alaska (128.6), and Maryland (132.2).
* Homebuyer affordability decreased for Black households, with the national PAPI increasing from 161.5 in April to 165.0 in May.
* Homebuyer affordability decreased for Hispanic households, with the national PAPI increasing from 144.3 in April to 147.5 in May.
* Homebuyer affordability decreased for White households, with the national PAPI increasing from 157.3 in April to 160.7 in May.
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