Homebuyers found housing more expensive in May as the national median payment applied for by purchase applicants increased to $2,211 from $2,186 in April, according to the Mortgage Bankers Association (MBA).

Despite the short-term higher costs, home affordability actually increased this past year, with median earnings rising 5.8% year over year in May. At the same time, the national median mortgage payment fell $8 from May of 2024.

The MBA’s purchase application payment index, which measures how new monthly mortgage payments vary across time, increased 1% from April’s findings, rising to a reading of 164.9 in May from 163.0 in April. An increase in the index means that homebuying is getting more expensive due to increasing application loan amounts, rising mortgage rates or a decrease in earnings.

“Homebuyer affordability declined in May as mortgage rates near 7% continued to put upward pressure on prospective homebuyers’ budgets,” said Edward Seiler, MBA’s associate vice president for housing economics, and executive director of the Research Institute for Housing America. “Despite current affordability constraints, many homebuyers are still eager to enter the housing market. Rising inventory levels and moderating home-price growth have both been bright spots during this year’s spring homebuying season.”