According to the Mortgage Bankers Association, homebuyer affordability declined further in April, with the national median payment applied for by purchase applicants increasing 0.9 percent to $2,112 compared to March. The national median mortgage payment is up $223 from one year ago, equal to an 11.8% increase.
The national PAPI—indicative of declining borrower affordability conditions—increased 0.5 percent to 172.3 in April from 171.5 in March, marking a new high.
“Homebuyer affordability eroded further in April, with both the typical borrower monthly payment and median purchase amount rising due to higher rates and home prices,” said Edward Seiler, MBA’s Associate Vice President, Housing Economics, and Executive Director, Research Institute for Housing America. “Elevated interest rates and low housing supply have kept many prospective borrowers on the sidelines. However, MBA expects mortgage rates to stabilize and inventory levels to improve, which should incentivize some buyers to reenter the market.”
The top five states with the highest PAPI were: Idaho (255.6), Nevada (246.3), Arizona (226.1), Florida (216.6), and California (213.9).