Mortgage Application Payments Increased 2.5%

The national median payment applied for by purchase applicants inched up by 2.5% in April to $2,256 from $2,201 in March, according to the Mortgage Bankers Association’s (MBA) Purchase Applications Payment Index. Compared to one year ago, the payment level was $144 higher, equal to a 6.8% increase.

The national median mortgage payment for conventional loan applicants was $2,271, up from $2,222 in March and up from $2,170 in April 2023. The national median mortgage payment for FHA loan applicants was $1,955 in April, up from $1,898 in March and up from $1,750 in April 2023.

For borrowers applying for lower-payment mortgages (the 25th percentile), the national mortgage payment increased to $1,537 in April from $1,488 in March.

“Homebuyer affordability conditions declined further as mortgage rates remained above 7% in April, sidelining many prospective buyers from entering the housing market,” said Edward Seiler, MBA’s associate vice president of housing Economics and the executive director of the Research Institute for Housing America. “In addition to lower mortgage rates, more housing inventory is desperately needed in markets throughout the country this summer to alleviate these tough affordability conditions.”