by National median mortgage payment fell by $13 from July 2024 and was down by $45 from June
WASHINGTON —Housing affordability rose in July, according to the latest Mortgage Bankers Association Purchase Applications Payment Index measuring new monthly mortgage payments.
According to the survey, the national median mortgage payment was $2,127 in July — down $13 from July 2024 and down $45 from June.
The index also noted that the national median mortgage payment for FHA loan applicants was $1,865 in July, up from $1,838 in July 2024, but down from $1,881 in June.
And the national median mortgage payment for conventional loan applicants was $2,160, which was up from $2,140 in July 2024 but down from $2,205 in June.
The survey analyzes borrower affordability conditions using a mortgage payment to income ratio.
The purchase applications payment index declines when loan application amounts or mortgage rates decrease and earnings increase, a sign of higher affordability. The opposite is true when the loan application amounts or interest rates rise, while earnings decrease.
The national PAPI decreased 157.8 in July from 163.7 in June, while median earnings rose 3.7% compared to July 2024 and payments decreased .6%.
“Affordability conditions have now improved for two consecutive months, the result of lower mortgage rates and continued strong income growth,” said Edward Seiler, MBA’s associate vice president of Housing Economics and executive director of Research Institute for Housing America. “MBA is forecasting that mortgage rates will remain in the 6.5% to 7% range for the rest of 2025. While still elevated, continued income growth and softening home-price gains should boost prospective buyers’ purchasing power in the months ahead.”
The index offered several other key takeaways including:
+ For borrowers applying for lower-payment mortgages, the national mortgage payment decreased to $1,468 in July from $1,500 in June.
+ Homebuyer affordability rose for black households, as the national PAPI decreased from 163.1 in June to 158.2 in July.
+ Homebuyer affordability increased for Hispanic households, with the national PAPI decreasing from 152.4 in June to 147.8 in July.
+ Homebuyer affordability increased for white households, with the national PAPI decreasing from 164.8 in June to 159.8 in July.
Is this data a positive for the furniture industry? That depends on the needs of new homeowners. While the monthly savings may help cover a monthly payment for a new sofa or sectional, or bedroom available at 0% financing over two to three years, realize that the industry is also facing competition for other needs and wants. This could be anything from a new washer or dryer to a new refrigerator. Or it could be for needed repairs on anything from new windows or doors, to repairs/maintenance on an HVAC system or even repairs to the kitchen or bathroom.
With such knowledge in hand, however, retailers may be able to present another reason for consumers to buy that much, wanted or needed bedroom, living room or dining set.
