Mortgage App Payments Report Showcases Ongoing Headwinds

According to the Mortgage Bankers Association’s (MBA) Purchase Applications Payment Index (PAPI), homebuyer affordability declined in April due to rising interest rates and other costs increasing from a median $2,201 in March to a median $2,256, a $55 increase. 

The PAPI is calculated by measuring how new monthly mortgage payments vary across time—relative to income—using data from the MBA’s Weekly Applications Survey. 

“Homebuyer affordability conditions declined further as mortgage rates remained above 7% in April, sidelining many prospective buyers from entering the housing market,” said Edward Seiler, MBA’s Associate VP, Housing Economics, and Execuive Director, Research Institute for Housing America. “In addition to lower mortgage rates, more housing inventory is desperately needed in markets throughout the country this summer to alleviate these tough affordability conditions.” 

An increase in MBA’s PAPI—indicative of declining borrower affordability conditions—means that the mortgage payment to income ratio (PIR) is higher due to increasing application loan amounts, rising mortgage rates, or a decrease in earnings. A decrease in the PAPI—indicative of improving borrower affordability conditions—occurs when loan application amounts decrease, mortgage rates decrease, or earnings increase. 

The national PAPI increased 1.5% to 176.8 in April from 174.2 in March. This occurred while median earnings increased by a modest 4.6% year-over-year, payments topped that by increasing 6.8%. The strong earnings growth means that the PAPI is up 2.1% on an annual basis. The PAPI was benchmarked to 100 based on data from March 2012. 

For borrowers applying for lower-payment mortgages (the 25th percentile), the national mortgage payment increased to $1,537 in April from $1,488 in March. 

The Builders’ Purchase Application Payment Index showed that the median mortgage payment for purchase mortgages from MBA’s Builder Application Survey increased to $2,604 in April from $2,556 in March. 

Additional key findings from the report

  • The national median mortgage payment was $2,256 in April—up $55 from March. It is up $144 from one year ago, equal to a 6.8% increase. 
  • The national median mortgage payment for FHA loan applicants was $1,955 in April, up from $1,898 in March and up from $1,750 in April 2023. 
  • The national median mortgage payment for conventional loan applicants was $2,271, up from $2,222 in March and up from $2,170 in April 2023. 
  • The top five states with the highest PAPI were: Idaho (267.2), Nevada (264.9), Arizona (236.4), Florida (227.4), and Rhode Island (224.8). 
  • The top five states with the lowest PAPI were: Alaska (131.6), Louisiana (134.1), Connecticut (134.2), New York (139.1), and Washington, D.C. (141.2). 
  • Homebuyer affordability decreased for Black households, with the national PAPI increasing from 180.4 in March to 183.1 in April. 
  • Homebuyer affordability decreased for Hispanic households, with the national PAPI increasing from 166.4 in March to 168.9 in April. 
  • Homebuyer affordability decreased for White households, with the national PAPI increasing from 176.8 in March to 179.5 in April. 

Click here for the report in its entirety. 

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Kyle G. Horst

Kyle G. Horst is a reporter for MortgagePoint. A graduate of the University of Texas at Tyler, he has worked for a number of daily, weekly, and monthly publications in South Dakota and Texas. With more than 10 years of experience in community journalism, he has won a number of state, national, and international awards for his writing and photography including best newspaper design by the Associated Press Managing Editors Group and the international iPhone photographer of the year by the iPhone Photography Awards. He most recently worked as editor of Community Impact Newspaper covering a number of Dallas-Ft. Worth communities on a hyperlocal level. Contact Kyle G. at
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