It got more expensive to buy a home in January as the national median mortgage payment increased to $2,205 from $2,127 in December, a gain of 3.7%, according to the Mortgage Bankers Association (MBA). Mortgage payments were also up $71 from a year ago, equal to an increase of 3.3%.

The MBA’s purchase application payment index (PAPI) measures how new monthly payments vary across time, relative to income, using data from MBA’s weekly application survey. The January PAPI showed that home affordability declined in January. That was due to higher mortgage interest rates and the median purchase application amount rose to $324,800 in January, up from $319,000 in December.

The national median payment for Federal Housing Administration applicants was $1,934 in January, up from $1,866 in December and up from $1,830 in January 2024. The national median mortgage payment for conventional loan applicants was $2,225, up from $2,128 in December and up from 2,053 one year ago.

“Homebuyer affordability conditions declined further in January as volatile mortgage rates and high home prices continue to impact many prospective buyers’ purchase power,” said Edward Seiler, MBA’s association vice president of housing economics and executive director of the Research Institute for Housing America. “Even with persisting affordability challenges, MBA is forecasting for a small increase in purchase originations in 2025, with activity increasing 16% to $2.1 trillion.”