Mortgage Application Payments Decreased In November

Homebuyer affordability improved slightly in November, with the national median payment applied for by purchase applicants decreasing to $2,034 from $2,039 in October. 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 have now improved for six straight months as lower mortgages rates and strong household earnings growth have increased prospective buyers’ purchasing power,” said Edward Seiler, MBA’s Associate Vice President of Housing Economics and Executive Director of the Research Institute for Housing America. “The national median mortgage payment was down $99 compared to November 2024. MBA expects that affordability conditions will continue to improve in 2026, with house prices forecast to fall nationally by 0.3% and mortgage rates forecast to remain around 6.4% throughout the year.”

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 0.2 percent to 149.6 in November from 149.8 in October. While payments decreased 4.6 percent, earnings growth of 2.9 percent means that the PAPI is down (affordability is higher) 7.3 percent on an annual basis. For borrowers applying for lower-payment mortgages (the 25th percentile), the national mortgage payment increased to $1,409 in November from $1,402 in October.

MBA’s national mortgage payment to rent ratio (MPRR) decreased from 1.45 at the end of the second quarter (June 2025) to 1.35 at the end of the third quarter (September 2025), meaning mortgage payments for home purchases have decreased relative to rents. The Census Bureau’s HVS national median asking rent in the third-quarter 2025 increased to $1,534 ($1,494 in second-quarter 2025). The 25th percentile mortgage application payment to median asking rent ratio decreased to 0.92 in September (1.00 in June 2025).

Additional Key Findings of MBA’s Purchase Applications Payment Index (PAPI) – November 2025

  *   The national median mortgage payment was $2,034 in November 2025 – down $5 from October. It was down by $99 from one year ago, equal to a 4.6% decrease.
  *   The national median mortgage payment for FHA loan applicants was $1,776 in November, down from $1,789 in October and down from $1,898 in November 2024.
  *   The national median mortgage payment for conventional loan applicants was $2,063, the same as in September and down from $2,133 in November 2024.
  *   The top five states with the highest PAPI were: Idaho (230.7), Nevada (226.3), Arizona (207.6), Rhode Island (198.7), and Utah (197.1).
  *   The top five states with the lowest PAPI were: Louisiana (106.7), Connecticut (112.4), West Virginia (119.9), New York (121.4), and Maryland (122.1).
  *   Homebuyer affordability increased for Black households, with the national PAPI decreasing from 154.9 in October to 154.6 in November.
  *   Homebuyer affordability increased for Hispanic households, with the national PAPI decreasing from 142.1 in October to 141.8 in November.
  *   Homebuyer affordability increased for White households, with the national PAPI decreasing from 151.6 in October to 151.2 in November.