Homebuyer Affordability Remains Steady in June

The Purchase Applications Payment Index (PAPI), as reported in the Mortgage Bankers Association’s (MBA) Monthly Weekly Applications Survey, showed a marginal decrease in the national median payment in June. According to the report, homebuyer affordability essentially remained flat in June with the median payment applied for by purchase applicants decreasing 0.1 percent to $2,162 from $2,165 in May.

Despite this, the Builders’ Purchase Application Payment Index (BPAPI) reported a slight increase in the median mortgage payment for purchase mortgages from MBA’s Builder Application Survey. It rose from $2,515 in May to $2,520 in June.

Here are some of the key findings from the June 2023 report:

• The national median mortgage payment witnessed a slight dip to $2,162 in June from $2,165 in May, marking an increase of $269, or 14.2%, from the same period a year ago.
• Mortgage payment for FHA loan applicants increased to $1,824 in June from $1,802 in May, and significantly up from $1,474 in June 2022.
• The national median mortgage payment for conventional loan applicants increased slightly to $2,205, up from $2,202 in May and up from $1,959 in June 2022.

Nevada (263.9), Idaho (260.9), Arizona (238.4), California (230.8), and Florida (225.3) topped the list of states with the highest PAPI.

In contrast, Alaska (123.1), Louisiana (129.8), Wyoming (130.6), Connecticut (131.0), and North Dakota (136.8) recorded the lowest PAPI.

The report also underscored a slight increase in homebuyer affordability among Black, Hispanic, and White households in June. The national PAPI decreased from 176.5 to 176.3 for Black households, 169.1 to 168.9 for Hispanic households, and 178.7 to 178.5 for White households.

Overall, the June findings indicate that homebuyer affordability remains steady despite marginal fluctuations.