The national median payment requested by buyers increased to $2,152 from $2,131 in March, indicating a deterioration in homebuyer affordability in April. This is in line with the Mortgage Bankers Association’s (MBA) Purchase Applications Payment Index (PAPI), which uses information from the MBA’s Weekly Applications Survey (WAS) to calculate how new monthly mortgage payments change over time in relation to income.
“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 VP 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.”
An increase in MBA’s PAPI, which is a sign of worsening borrower affordability conditions, indicates that the mortgage payment to income ratio (PIR) is higher as a result of higher application loan amounts, higher mortgage rates, or lower earnings. When loan application quantities drop, mortgage rates drop, or incomes rise, the PAPI decreases, which is a sign of improving borrower affordability conditions.
Key Findings from the National PAPI:
- From 155.5 in March to 156.0 in April, the national PAPI (Figure 1) grew by 0.3%.
- Although payments fell by 1.6%, earnings growth of 4.0% indicates a 5.3% yearly fall in PAPI (affordability is better).
- The national mortgage payment went from $1,479 in March to $1,493 in April for borrowers applying for lower-payment mortgages (the 25th percentile).
- In April 2026, the national median mortgage payment was $2,152, an increase of $21 from March. It was down $35, or 1.6%, from a year ago.
- For FHA loan applicants, the national median mortgage payment was $1,829 in April, down from $1,895 in April 2025 and up from $1,812 in March.
- For conventional loan applicants, the national median mortgage payment was $2,166, down from $2,206 in April 2025 and up from $2,145 in March.
- Idaho (248.1), Nevada (228.4), Rhode Island (206.9), Arizona (202.2), and Tennessee (194.8) were the top five states with the highest PAPI.
- Louisiana (120.1), Hawaii (124.4), D.C. (125.2), Connecticut (125.2), New York (116.7), and Maryland (128.4) were the top five states with the lowest PAPI.
- Black households had a decline in homebuyer affordability, with the national PAPI rising from 161.0 in March to 161.5 in April.
- The national PAPI increased from 143.9 in March to 144.3 in April, indicating a decline in homebuyer affordability for Hispanic households.
- White households saw a decline in homebuyer affordability, with the national PAPI rising from 156.8 in March to 157.3 in April.
The national mortgage payment to rent ratio (MPRR) for MBA fell from 1.38 at the end of the fourth quarter (December 2025) to 1.35 at the end of the first quarter (March 2026), indicating a decline in mortgage payments for home purchases in relation to rents. In the first quarter of 2026, the Census Bureau’s HVS national median asking rent rose to $1,579 ($1,464 in the fourth quarter of 2025).
In March, the ratio of the median asking rent to the 25th percentile mortgage application payment dropped to 0.94 from 0.96 in December 2025. The median mortgage payment for purchase mortgages from MBA’s Builder Application Survey dropped from $2,210 in March to $2,188 in April, according to the Builders’ Purchase Application Payment Index (BPAPI).
Note: The rent data series calculated for MBA’s national mortgage payment to rent ratio (MPRR) comes from the U.S. Census Bureau’s Housing Vacancies and Homeownership (HVS) survey’s median asking rent. The HVS data is quarterly, and as such, the mortgage payment to rent ratio will be updated quarterly. The HVS data is quarterly, and as such, the mortgage payment to rent ratio will be updated quarterly.
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