The national median monthly payment applied for by homebuyers seeking a mortgage declined for the fifth consecutive month in October, according to newly published figures from the Mortgage Bankers Association (MBA).
Median application payments fell $28 to $2,039 in October from $2,067 the previous month, and were down $88 from a year ago as the MBA’s Purchase Applications Payment Index (PAPI) reached its lowest level since March 2022.
A decline in the PAPI indicates improving borrower affordability conditions influenced by shifts in loan application amounts, mortgage rates or earnings.
Edward Seiler, associate vice president of housing economics at the MBA, attributed October’s improved affordability to lower mortgage rates, higher household earnings and cooling home price growth. He said the trend “is likely to continue as mortgage rates hold to around 6% and more supply comes onto the market.”
The PAPI fell 1.6% to 152 in October from 155 in September and is down 5.5% annually.
The median application payment for loans backed by the Federal Housing Administration was $1,789 in October, down from $1,792 in September and $1,842 in October 2024.
The lowest PAPI readings were seen in Louisiana (113.5), Connecticut (116.2), Washington, D.C. (118.6), Hawaii (123.6) and North Dakota (124.9). States with the highest PAPI were Idaho (238), Nevada (230.7), Rhode Island (199.4), Arizona (198.6) and Tennessee (192.8).
