Home affordability slips as median mortgage payment rises to $2,152

The national median monthly mortgage payment applied for by purchase mortgage applicants increased in April to $2,152 from $2,131 in March. The Mortgage Bankers Association’s Purchase Applications Payment Index rose 0.3% to 156.0, indicating a higher mortgage payment-to-income ratio for new purchase loan applications. Payments for lower-payment loans at the 25th percentile also rose to $1,493 from $1,479. Despite the monthly deterioration, the median payment was still 1.6% lower than a year earlier, while household earnings were up 4%, leading the index to be 5.3% lower on an annual basis. Mortgage rates edged higher and loan amounts rose, but affordability improved versus last spring. The mortgage-payment-to-rent ratio fell to 1.35 at the end of Q1 2026, while median asking rent increased to $1,579 from $1,464.

"Homebuyer affordability declined in April as the national median payment applied for by purchase mortgage applicants rose to $2,152, up from $2,131 in March, according to the Mortgage Bankers Association (MBA)'s Purchase Applications Payment Index (PAPI) released Thursday."

"The national PAPI rose 0.3% to a reading of 156.0 in April, up from 155.5 in March, indicating a higher mortgage payment-to-income ratio for new purchase loan applications. For lower-payment loans at the 25th percentile, the national mortgage payment increased to $1,493, up from $1,479 a month prior."

"Despite the monthly deterioration, affordability remains better than a year ago. The median payment of $2,152 in April 2026 was $35, or 1.6%, lower than in April 2025, while household earnings grew 4% over the same period. Taken together, these trends pushed the index down 5.3% on an annual basis, signaling improved affordability compared to last spring."

"MBA's national mortgage-payment-to-rent ratio (MPRR) fell to 1.35 at the end of the first quarter of 2026, down from 1.38 at the end of the fourth quarter of 2025 meaning that mortgage payments for home purchases have decreased relative to asking rents. During that period, the U.S. Census Bureau's Housing Vacancy Survey showed the national median asking rent climbed to $1,579 in Q1 2026, up from $1,464 in the prior quarter."

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