It was more expensive to buy a home in October, thanks to rising mortgage rates and the general cost of applying for a loan, according to the Mortgage Bankers Association (MBA).

The MBA’s Purchase Applications Payment Index (PAPI), which measures how new monthly mortgage payments vary across time, relative to income, found that the median payment applied for by purchase applicants reached $2,127 in October, up from $2,041 in September.

The national PAPI increased 2.8% to 162.3 in October, up from 157.9 in September. Median earnings were up 3.2% compared to one year ago. While payments decreased 3.3%, the moderate earnings growth means that the PAPI is down 6.3% on an annual basis. For borrowers applying for lower-payment mortgages, the national mortgage payment increased to $1,431 in October, from $1,369 in September.

An increase in the PAPI indicates declining borrower affordability conditions, and that the mortgage payment-to-income ratio is higher due to increasing application loan amounts, rising mortgage rates or a decrease in earnings.

“Homebuyer affordability conditions declined notably in October as rapidly rising mortgage rates pushed the national median mortgage payment up $86 from September,” said Edward Seiler, MBA’s associate vice president, housing economics, and executive director, Research Institute for Housing America. “With the increase in mortgage rates, the PAPI reached its highest level since July, and we expect weaker homebuyer affordability to remain a hurdle for prospective buyers in the final months of 2024.”