Mortgage Bankers Association

04/30/2026 | News release | Distributed by Public on 04/30/2026 09:43

Mortgage Application Payments Increased in March

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WASHINGTON, D.C. (April 30, 2026) - Homebuyer affordability declined in March, with the national median payment applied for by purchase applicants increasing to $2,131 from $2,061 in February. This is according to the Mortgage Bankers Association's (MBA) Purchase Applications Payment Index (PAPI), which measures how new monthly mortgage payments vary across time - relative to income - using data from MBA's Weekly Applications Survey (WAS).

"Homebuyer affordability conditions declined in March, as rising mortgage rates and higher loan amounts continued to stretch household budgets. The national PAPI increased by 4.9 points, reflecting a broad-based decline in affordability across 44 states," said Edward Seiler, MBA's Associate Vice President of Housing Economics and Executive Director of the Research Institute for Housing America. "The combination of a 26-basis-point increase in rates, and a rise in the median purchase application amount to $335,000, reflects the ongoing pressure facing prospective buyers. Looking ahead, while these headwinds may temper demand in the near term, improvements in housing supply and moderating home-price growth could help restore some stability to the housing market."

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 (Figure 1) increased 3.4 percent to 154.9 in March from 149.8 in February. While payments decreased 2.0 percent over the last year, earnings growth of 3.9 percent means that the PAPI is down (affordability is higher) 5.6 percent on an annual basis. For borrowers applying for lower-payment mortgages (the 25th percentile), the national mortgage payment increased to $1,479 in March from $1,436 in February.

The Builders' Purchase Application Payment Index (BPAPI) showed that the median mortgage payment for purchase mortgages from MBA's Builder Application Survey increased to $2,210 in March from $2,157 in February.

Additional Key Findings of MBA's Purchase Applications Payment Index (PAPI) - March 2026
  • The national median mortgage payment was $2,131 in March 2026-up $70 from February. It was down by $43 from one year ago, equal to a 2.0% decrease.
  • The national median mortgage payment for FHA loan applicants was $1,812 in March, up from $1,763 in February and down from $1,872 in March 2025.
  • The national median mortgage payment for conventional loan applicants was $2,145, up from $2,089 in February and down from $2,200 in March 2025.
  • The top five states with the highest PAPI were: Idaho (240.2), Nevada (228.4), Rhode Island (203.6), Arizona (203.5), and Florida (193.6).
  • The top five states with the lowest PAPI were: Louisiana (118.0), D.C. (118.4), Connecticut (119.7), New York (116.7), and Alaska (127.4).
  • Homebuyer affordability decreased for Black households, with the national PAPI increasing from 154.8 in February to 160.1 in March.
  • Homebuyer affordability decreased for Hispanic households, with the national PAPI increasing from 142.1 in February to 146.9 in March.
  • Homebuyer affordability decreased for White households, with the national PAPI increasing from 151.5 in February to 156.6 in March.
About MBA's Purchase Applications Payment Index
The Mortgage Bankers Association's Purchase Applications Payment Index (PAPI) measures how new mortgage payments vary across time relative to income. Higher index values indicate that the mortgage payment to income ratio (PIR) is higher than in a month where the index is lower. Contrary to other affordability indexes that make multiple assumptions about mortgage underwriting criteria to estimate mortgage payment level, PAPI directly uses MBA's Weekly Applications Survey (WAS) data to calculate mortgage payments.

PAPI uses usual weekly earnings data from the U.S. Bureau of Labor Statistics' Current Population Survey (CPS). Usual weekly earnings represent full-time wage and salary earnings before taxes and other deductions and include any overtime pay, commissions, or tips usually received. Note that data are not seasonally adjusted.

MBA's Builders' Purchase Application Payment Index (BPAPI) uses MBA's Builder Application Survey (BAS) data to create an index that measures how new mortgage payments vary across time relative to income, with a focus exclusively on newly built single-family homes. As with PAPI, higher index values indicate that the mortgage payment to income ratio (PIR) is higher than in a month where the index is lower. To create BPAPI, principal and interest payment amounts are deflated by the same earnings series as in PAPI.

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. MPRR data was not included in the March 2026 data.

For additional information on MBA's Purchase Applications Payment Index, click here.
Mortgage Bankers Association published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 15:43 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]