MBA Purchase Applications Payment Index Showed September Increase 

In September, homebuyer affordability experienced a decline, as the national median payment sought by purchase applicants rose to $2,215 from $2,162 in August. This recent data comes from the Mortgage Bankers Association’s (MBA) Purchase Applications Payment Index (PAPI), which tracks the fluctuations of new monthly mortgage payments in relation to income over time, utilizing data from MBA’s Weekly Applications Survey (WAS).

Key Findings (September 2026):

• The national median mortgage payment was $2,215 in September 2026—up $53 from August. It was up by $148 from one year ago, equal to a 7.1% increase.
• The national median mortgage payment for FHA loan applicants was $1,906 in September, up from $1,856 in August and up from $1,792 in September 2025.
• The national median mortgage payment for conventional loan applicants was $2,244, up from $2,188 in August and up from $2,105 in September 2025.
• The top five states with the highest PAPI were: Idaho (254.9), Nevada (238.6), Rhode Island (220.4), Arizona (210.3), and Tennessee (199.8).
• The top five states with the lowest PAPI were: Louisiana (116.6), Connecticut (123.3), W. Virginia (127.7), Alaska (128.6), and Iowa (130.2).
• Homebuyer affordability decreased for Black households, with the national PAPI increasing from 155.1 in August to 158.8 in September.
• Homebuyer affordability decreased for Hispanic households, with the national PAPI increasing from 142.9 in August to 146.4 in September.
• Homebuyer affordability decreased for White households, with the national PAPI increasing from 157.1 in August to 161.0 in September.

“Homebuyer affordability worsened in September as mortgage rates increased 30 basis points, pushing the median monthly mortgage payment $53 higher to $2,215,” said Edward Seiler, MBA’s Associate VP of Housing Economics and Executive Director of the Research Institute for Housing America. “Despite a slight decline in the median loan amount, higher mortgage rates drove monthly payments upward, with affordability deteriorating in 39 states. Compared to a year ago, mortgage payments are up more than seven percent, outpacing earnings growth and adding to the affordability challenges facing prospective homebuyers.”

The national PAPI rose by 2.4 percent to reach 158.2 in September, up from 154.5 in August. Although payments saw an increase of 7.1 percent, the earnings growth of 4.0 percent indicates that the PAPI has risen by 3.1 percent on an annual basis, reflecting a decrease in affordability. For borrowers seeking lower-payment mortgages, specifically those in the 25th percentile, the national mortgage payment climbed to $1,525 in September, compared to $1,492 in August.

The Builders’ Purchase Application Payment Index (BPAPI) revealed that the median mortgage payment for purchase mortgages, as reported by MBA’s Builder Application Survey, increased to $2,307 in September, up from $2,214 in August.

Note: 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.

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