WASHINGTON — Homebuyer affordability worsened in May as higher mortgage rates and larger loan application amounts drove monthly mortgage payments higher, according to data released by the Mortgage Bankers Association (MBA).
The MBA reported its Purchase Applications Payment Index (PAPI), which measures mortgage payment burdens relative to income, increased 2.2% to 159.4 in May from 156.0 in April. A higher index reading indicates that affordability has deteriorated.
The national median monthly mortgage payment for purchase applicants rose to $2,198 in May, up from $2,152 in April. Despite the month-over-month increase, the median payment was 0.6% lower than in May 2025, according to the MBA.
Weakening Affordability
“Affordability conditions weakened in May, as rising mortgage rates, combined with increasing loan application amounts, drove mortgage payments higher,” Edward Seiler, the MBA’s associate vice president of housing economics and executive director of the Research Institute for Housing America, said in a statement.
“The decrease in affordability was widespread, with conditions declining in 33 states,” Seiler added. “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.”
Key Findings
According to the MBA:
- The Purchase Applications Payment Index increased 2.2% to 159.4 in May from 156.0 in April.
- The national median monthly mortgage payment increased to $2,198 from $2,152.
- Median mortgage payments remained 0.6% below year-earlier levels.
- Homebuyer affordability deteriorated in 33 states.
- The index compares mortgage payments with household earnings using mortgage application data and U.S. Bureau of Labor Statistics income data.
The MBA said borrowers applying for lower-payment mortgages, represented by the 25th percentile of applicants, saw their median monthly payment increase to $1,532 in May from $1,493 in April.
Loan Type Trends
Affordability declined across several mortgage products, according to the MBA.
- FHA loans: Median payment increased to $1,873 from $1,829 in April but remained below the $1,927 recorded a year earlier.
- Conventional loans: Median payment rose to $2,211 from $2,166 in April and remained slightly below the $2,235 level from May 2025.
Demographic Trends
The MBA reported affordability worsened across major demographic groups:
- Black households: PAPI increased to 165.0 from 161.5.
- Hispanic households: PAPI increased to 147.5 from 144.3.
- White households: PAPI increased to 160.7 from 157.3.
State Rankings
The MBA said the highest affordability burdens were recorded in:
- Idaho: 254.1
- Nevada: 231.5
- Rhode Island: 213.1
- Arizona: 209.1
- Florida: 200.4
The lowest affordability burdens were recorded in:
- Louisiana: 121.7
- District of Columbia: 123.1
- Connecticut: 124.9
- Alaska: 128.6
- Maryland: 132.2
New Home Market
The MBA reported affordability improved modestly for newly constructed single-family homes.
Its Builders’ Purchase Application Payment Index showed the median mortgage payment for new-home purchase loans declined to $2,173 in May from $2,188 in April.
The association said the improvement in the new-home market contrasted with affordability conditions in the broader existing-home market, where higher mortgage rates and increasing loan balances continued to pressure prospective buyers.
