MBA: Mortgage Application Payments Decreased Slightly In July

Homebuyer affordability improved in July, with the national median payment applied for by purchase applicants decreasing to $2,175 from $2,191 in June. 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 improved in July, as a decline in the median loan amount offset a modest increase in mortgage rates, bringing the typical mortgage payment down to $2,175. Affordability also improved on an annual basis, as earnings growth continued to outpace the increase in mortgage payments,” said Edward Seiler, MBA’s Associate Vice President of Housing Economics and Executive Director of the Research Institute for Housing America (RIHA). “Looking ahead, we expect affordability conditions to remain closely tied to the path of mortgage rates and home-price growth. Mortgage rates have increased in recent weeks, but any sustained reversal, combined with moderating home-price growth and rising inventory, would provide additional relief for prospective buyers through the remainder of 2026.”

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) decreased 1.3 percent to 155.8 in July from 157.9 in June. While payments increased 2.2 percent, earnings growth of 3.6 percent means that the PAPI is down (affordability is higher) 1.3 percent on an annual basis. For borrowers applying for lower-payment mortgages (the 25th percentile), the national mortgage payment decreased to $1,512 in July from $1,522 in June.

MBA’s national mortgage payment to rent ratio (MPRR) increased from 1.35 at the end of the first quarter (March 2026) to 1.43 at the end of the second quarter (June 2026), meaning mortgage payments for home purchases have increased relative to rents. The Census Bureau’s HVS national median asking rent in second-quarter 2026 decreased to $1,531 ($1,579 in first-quarter 2026). The 25th percentile mortgage application payment to median asking rent ratio increased to 0.99 in June (0.94 in March).

The Builders’ Purchase Application Payment Index (BPAPI) showed that the median mortgage payment for purchase mortgages from MBA’s Builder Application Survey increased to $2,210 in July from $2,199 in June.

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

  *   The national median mortgage payment was $2,175 in July 2026—down $16 from June. It was up by $48 from one year ago, equal to a 2.2% increase.
  *   The national median mortgage payment for FHA loan applicants was $1,901 in July, up from $1,872 in June and up from $1,865 in July 2025.
  *   The national median mortgage payment for conventional loan applicants was $2,184, down from $2,209 in June and up from $2,160 in July 2025.
  *   The top five states with the highest PAPI were: Idaho (247.2), Nevada (228.7), Rhode Island (209.9), Arizona (205.9), and Florida (192.0).
  *   The top five states with the lowest PAPI were: Louisiana (113.0), D.C. (113.5), N. Dakota (118.9), Alaska (123.5), and Connecticut (125.6).
  *   Homebuyer affordability increased for Black households, with the national PAPI decreasing from 158.5 in June to 156.4 in July.
  *   Homebuyer affordability increased for Hispanic households, with the national PAPI decreasing from 146.1 in June to 144.2 in July.
  *   Homebuyer affordability increased for White households, with the national PAPI decreasing from 160.6 in June to 158.5 in July.