Homebuyer affordability improved in September, with the national median payment applied for by purchase applicants decreasing to $2,067, down from $2,100 in September, according to the Mortgage Bankers Association’s (MBA) Purchase Applications Payment Index (PAPI).
That brought the index score down to 155.0, a decrease of 1.6% compared with August.
The index measures how new monthly mortgage payments vary across time – relative to income – using data from MBA’s Weekly Applications Survey (WAS).
“Affordability improved for the fourth consecutive month, supported by lower mortgage rates and a growing housing supply,” says Edward Seiler, associate vice president of housing economics and executive director of the Research Institute for Housing America. “Affordability conditions have strengthened steadily throughout 2025, and with mortgage rates expected to stabilize and home prices remaining flat, we anticipate slightly stronger housing demand heading into 2026.”
An increase in the index score is indicative of declining borrower affordability conditions.
Preliminary estimates of median earnings, based on pre-shutdown August data, were up 3.2% compared to one year ago, the MBA says, and while payments increased 1.3%, the significant earnings growth means that the index is down (i.e., affordability is higher) 1.9% on an annual basis.
Photo: Blake Wheeler