Homebuyer affordability stayed the same in February, with the national median payment for purchase applicants holding steady at $2,205, according to the Mortgage Bankers Association's (MBA) Purchase Applications Payment Index (PAPI).
“Homebuyer affordability conditions remained unchanged in February as many homebuyers continue to weigh their options on entering the housing market amid economic uncertainty and slowly declining mortgage rates,” said Edward Seiler, MBA’s Associate Vice President, Housing Economics, and Executive Director, Research Institute for Housing America. “While February’s data reflects little movement, we do expect that rising housing inventory, coupled with lower mortgage rates, will spur additional activity in the housing market.”
MBA’s PAPI measures how new monthly mortgage payments vary relative to income. An increase in the index suggests worsening affordability, typically driven by higher loan amounts, rising mortgage rates, or declining earnings. Conversely, a decrease means improved affordability.
In February, the national PAPI inched up 0.1% to 166.2 from 166.1 in January. Although median earnings rose 5.0% year-over-year, the monthly mortgage payment increased by 1.0%. However, thanks to strong earnings growth, the PAPI is still down 3.8% compared to last year.
For borrowers seeking lower-payment mortgages (25th percentile), the national median mortgage payment dropped to $1,506 in February, down from $1,519 in January.
Additionally, MBA’s Builders’ Purchase Application Payment Index (BPAPI) showed a decrease in the median mortgage payment for builder purchase loans, falling to $2,463 in February from $2,531 in January.
Key Findings of MBA's PAPI February 2025
- The national median mortgage payment was $2,205 in February 2025—unchanged from January. It is up by $21 from one year ago, equal to a 1.0% increase.
- The national median mortgage payment for FHA loan applicants was $1,907 in February, down from $1,934 in January and up from $1,872 in February 2024.
- The national median mortgage payment for conventional loan applicants was $2,226, up from $2,225 in January and up from $2,194 in February 2024.
- The top five states with the highest PAPI were: Idaho (252.5), Nevada (241.8), Rhode Island (224.7), Arizona (222.9), and Tennessee (209.4).
- The top five states with the lowest PAPI were: Louisiana (121.9), Connecticut (125.0), North Dakota (126.1), New York (131.3), and Oklahoma (132.1).
- Homebuyer affordability marginally decreased for Black households, with the national PAPI increasing from 157.3 in January to 157.4 in February.
- Homebuyer affordability remained constant for Hispanic households, with the national PAPI remaining unchanged from January to February at 158.8.
- Homebuyer affordability remained constant for White households, with the national PAPI remaining unchanged from January to February at 169.3.
