Affordability went down in 33 states, according to the latest MBA numbers
Homebuyer affordability weakened in May from the previous month, even though conditions remained better than a year earlier, according to the Mortgage Bankers Association’s (MBA) Purchase Applications Payment Index (PAPI).
The national median mortgage payment applied for by purchase applicants rose to $2,198 in May, up $46 from $2,152 in April. MBA’s affordability index increased 2.2% to 159.4 from 156.0, signaling that mortgage payments took up a larger share of borrower income during the month.
The shift came as mortgage rates moved higher, with Freddie Mac data showing the average 30-year fixed rate climbing to 6.44% in May from 6.33% in April.
“Affordability conditions weakened in May, as rising mortgage rates, combined with increasing loan application amounts, drove mortgage payments higher,” said Edward Seiler, associate vice president of housing economics at MBA. “The decrease in affordability was widespread, with conditions declining in 33 states. While affordability conditions remain improved compared to a year ago, the monthly increase underscores how sensitive prospective homebuyers remain to changes in interest rates and home prices.”
Changing borrower conditions
For mortgage professionals, the May data points to how quickly borrower conditions can change. Even with year-over-year improvement, higher rates and larger loans were enough to put renewed pressure on monthly payments.
The national median payment was still $13 lower than in May 2025, a 0.6% annual decline. MBA said earnings growth of 4.0% helped improve affordability by 4.4% from a year earlier, despite the monthly setback.
Borrowers seeking lower-payment loans also saw costs rise. For applicants at the 25th percentile, the national mortgage payment increased to $1,532 in May from $1,493 in April.
Affordability weakened across major borrower groups. The national PAPI for Black households rose to 165.0 in May from 161.5 in April. For Hispanic households, it increased to 147.5 from 144.3. For White households, it rose to 160.7 from 157.3.
By loan type, the median payment for FHA applicants increased to $1,873 in May from $1,829 in April, though it remained below the $1,927 recorded in May 2025. For conventional loan applicants, the median payment rose to $2,211 from $2,166 in April and was down from $2,235 a year earlier.
Mixed conditions overall
Affordability also varied widely by location. Idaho had the highest PAPI reading in May at 254.1, followed by Nevada at 231.5, Rhode Island at 213.1, Arizona at 209.1, and Florida at 200.4. The lowest readings were in Louisiana at 121.7, the District of Columbia at 123.1, Connecticut at 124.9, Alaska at 128.6, and Maryland at 132.2.
The broader housing market showed mixed conditions. Existing-home sales rose 3.2% in May to a seasonally adjusted annual rate of 4.17 million, according to the National Association of Realtors. At the same time, the median existing-home price increased 1.3% from a year earlier to $429,300, while inventory stood at 4.5 months of supply.
The new-home market moved differently. MBA’s Builders’ Purchase Application Payment Index showed that the median mortgage payment for new-home purchase applications decreased to $2,173 in May from $2,188 in April.
That came as new-home sales slowed. Census Bureau and Department of Housing and Urban Development data showed new single-family home sales fell 7.3% in May to a seasonally adjusted annual rate of 580,000. The number of new homes for sale rose to 496,000, equal to 10.3 months of supply, while the median new-home sales price was $424,900.
