Home purchase affordability continued to decline in March, as the median monthly mortgage payment borrowers applied for increased 5% over February, the Mortgage Bankers Association said.
The MBA's Purchase Applications Payment Index, which measures how new monthly mortgage obligations vary across time relative to the borrower's income, reached a high of 150.9 in March, up from
The index is 22.8% higher than it was for March 2021, when it was at 122.9. Since December 2021, the PAPI has climbed over 22%.
"The healthy labor market and
The national median payment applied for by homebuyers rose by 5% in March to $1,736 from $1,653 in February; it was $1,349 in March 2021.
Borrowers seeking a Federal Housing Administration-insured mortgage found the median mortgage payment increased to $1,254 in March, compared with $1,201 in February and $1,018 in March 2021. For conventional loans — which includes conforming and jumbo mortgage borrowers — the median mortgage payment was $1,819 in March, versus $1,750 for February and $1,424 in March 2021.
"Swift price-appreciation, sky-high inflation, low inventory, and mortgage rates now two percentage points higher than last year are all
Black households have the highest PAPI, at 153.8 for March, an increase of 5% from February's 146.5. The PAPI for white households increased to 151.6 for March, which was also up 5% on a month-to-month basis from 144.4. Hispanic households' PAPI increased to 144.4 from February's 137.5.