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.
“Housing affordability conditions weakened slightly in April, as mortgage rates edged higher and rising loan amounts pushed monthly payments up from March. However, affordability remains improved compared to a year ago, supported by lower mortgage rates and continued income growth,” said Edward Seiler, MBA’s associate vice president of housing economics and executive director of the Research Institute for Housing America.
“Looking ahead, continued income gains and some stabilization in mortgage rates could help support better affordability conditions.”
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.
The payment-to-rent picture improved more for lower-payment borrowers. The 25th percentile mortgage application payment to median asking rent ratio slipped to 0.94 in March, down from 0.96 in December 2025. This suggests that, at the lower end of the market, monthly mortgage payments are moving closer to or below typical rents in many areas.
The national median mortgage payment for Federal Housing Administration (FHA) borrowers rose to $1,829 in April, up from $1,812 in March, but was down from $1,895 in April 2025. For conventional loan applicants, the national median payment increased to $2,166 in April. That compared to $2,145 in March 2026 and $2,206 in April 2025.
Affordability for newly built homes softened during the month. MBA’s Builders’ Purchase Application Payment Index (BPAPI), which uses data from the Builder Application Survey, showed the median mortgage payment for new-home purchase loans slipping to $2,188 in April, down from $2,210 in March.
Even with that decrease, new-home payments remain slightly higher than the overall market median, reflecting both higher new-home prices and concentration in certain metro areas.
Conditions varied widely at the state level, underscoring the geographic unevenness of the affordability squeeze. The states with the highest PAPI readings in April were Idaho (248.1), Nevada (228.4) and Rhode Island (206.9).
At the other end of the spectrum, the lowest PAPI readings were in Louisiana (120.1), Hawaii (124.4) and the District of Columbia (125.2).
Affordability also slipped across major racial and ethnic groups in April. MBA reported that the PAPI reading for Black households increased from 161.0 to 161.5, while the reading for Hispanic households increased from 143.9 to 144.3, and the reading for white households increased from 156.8 to 157.3.
MBA’s Purchase Applications Payment Index tracks how new mortgage payments change over time relative to income, using loan application data from MBA’s Weekly Applications Survey and earnings data from the U.S. Bureau of Labor Statistics’ Current Population Survey. Higher index values indicate a higher mortgage payment-to-income ratio compared to periods when the index is lower.
This article was generated using HousingWire Automation and reviewed by a HousingWire editor before publication. The system helps convert company announcements and industry data into HousingWire-style news coverage.
