Homebuyer affordability declined in February, with the national median payment applied for by purchase applicants increasing 4.9% to $2,061 from $1,964 in January, according to the Mortgage Bankers Association's (MBA) Purchase Applications Payment Index (PAPI).
The Builders’ Purchase Application Payment Index (BPAPI) showed that the median mortgage payment for purchase mortgages from MBA’s Builder Application Survey increased to $2,492 in February compared to $2,379 in January.
Additional Key Findings of MBA's Purchase Applications Payment Index (PAPI) – February 2023
- The national median mortgage payment was $2,061 in February, up from $1,964 in January and from $1,920 in December. It is up $408 from one year ago, equal to a 24.7% increase.
- The national median mortgage payment for FHA loan applicants was $1,707 in February, up from $1,619 in January and from $1,201 in February 2022.
- The national median mortgage payment for conventional loan applicants was $2,117, up from $2,009 in January and from $1,750 in February 2022.
- The top five states with the highest PAPI were: Nevada (251.6), Idaho (249.3), Arizona (225.7), Utah (222.8), and California (217.4).
- The top five states with the lowest PAPI were: Connecticut (111.7), North Dakota (118.2), West Virginia (119.8), Louisiana (121.1), and Vermont (121.6).
- Homebuyer affordability decreased for Black households, with the national PAPI increasing from 161.7 in January to 169.7 in February.
- Homebuyer affordability decreased for Hispanic households, with the national PAPI increasing from 154.6 in January to 162.2 in February.
- Homebuyer affordability decreased for White households, with the national PAPI increasing from 162.9 in January to 170.9 in February.
To read the full report, including more data, charts and methodology, click here.