Homebuyer affordability improved in July, with the national median mortgage payment applied for by purchase applicants decreasing to $2,175 from $2,191 in June.
According to data from the Mortgage Bankers Association (MBA), last month’s national median mortgage payment was up by $48 from July 2025, equal to a 2.2% increase.
The national median mortgage payment for conventional loan applicants was $2,184, down from $2,209 in June and up from $2,160 in July 2025.
The national median mortgage payment for FHA loan applicants was $1,901 in July, up from $1,872 in June and up from $1,865 in July 2025.
“Homebuyer affordability improved in July, as a decline in the median loan amount offset a modest increase in mortgage rates, bringing the typical mortgage payment down to $2,175. Affordability also improved on an annual basis, as earnings growth continued to outpace the increase in mortgage payments,” said Edward Seiler, MBA’s associate vice president of housing economics and executive director of the Research Institute for Housing America. “Looking ahead, we expect affordability conditions to remain closely tied to the path of mortgage rates and home-price growth. Mortgage rates have increased in recent weeks, but any sustained reversal, combined with moderating home-price growth and rising inventory, would provide additional relief for prospective buyers through the remainder of 2026.”
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