New data from the Mortgage Bankers Association’s Purchase Applications Payment Index shows mortgage payments are becoming more affordable. The index, which measures the median mortgage payment applied for by prospective borrowers, found payments fell to $2,034 in November from $2,039 the month before.
Edward Seiler, MBA’s associate vice president of housing economics and executive director of the Research Institute for Housing America, says the improvement marked six-straight months of gains. “Affordability conditions have now improved for six-straight months as lower mortgage rates and strong household earnings growth have increased prospective buyers’ purchasing power,” Seiler said. “The national median mortgage payment was down $99 compared to November 2024.”
For borrowers applying for lower-payment mortgages, the typical payment increased slightly, rising to $1,409 in November from $1,402 the month before. Looking forward, the MBA expects affordability to continue to improve in 2026, with both home prices and mortgage rates expected to remain relatively steady throughout the year.
[Source: Mortgage Bankers Association]