Weekly Real Estate News
Summary
MBA reports the median principal-and-interest payment sought by U.S. purchase-mortgage applicants rose $53 to $2,215 in September 2026, reversing three months of improvement. The PAPI affordability index rose 2.4% to 158.2 and affordability worsened in 39 states. These are application payments, not all-in homeowner costs.
Homebuyers applying for purchase mortgages faced a sharper monthly payment in September, reversing the improvement recorded over the summer as borrowing costs climbed. The national median principal-and-interest payment requested by applicants rose $53 to $2,215, according to new figures from the Mortgage Bankers Association.
The MBA report, released October 29, shows the median payment increased from $2,162 in August and stood $148, or 7.1%, above September 2025. The underlying applications were submitted during September; the publication date is not the date of an individual mortgage transaction.
Rates reverse the summer affordability improvement
MBA said mortgage rates rose about 30 basis points during September. The resulting increase in monthly payments occurred even though the median loan amount edged lower, highlighting how financing costs can offset a smaller mortgage balance. The association’s Purchase Applications Payment Index rose 2.4% to 158.2 from 154.5 in August. A higher index signals that payments have become less affordable relative to earnings.
The September increase follows three consecutive months of lower median application payments through August. It is a change in the direction of the latest monthly reading, not evidence that every household’s mortgage payment increased. Most homeowners with existing fixed-rate mortgages are unaffected by changes in the payment quoted on new applications.
Annual earnings growth of 4.0% lagged the 7.1% increase in the median requested payment, MBA reported. On that comparison, its affordability index deteriorated 3.1% from a year earlier. The index is calculated using mortgage application information and national earnings data; it is not a survey of all household housing expenses.
FHA and conventional applicants both face higher payments
For borrowers seeking FHA-insured purchase loans, the median application payment increased to $1,906 in September from $1,856 in August. That compares with $1,792 a year earlier. Conventional-loan applicants faced a median payment of $2,244, up from $2,188 the previous month and $2,105 in September 2025.
Applicants in the lower-payment quarter of the national market were not insulated from the increase. Their median payment rose to $1,525 from $1,492, according to the association. Among buyers of newly built homes, the median payment in MBA’s separate builder survey reached $2,307, compared with $2,214 in August.
These figures describe the principal-and-interest payments associated with loan applications, not the total monthly cost of owning a property. Property taxes, homeowners insurance, mortgage insurance where applicable, association dues and maintenance can add materially to a household’s actual outlay. The data also should not be interpreted as a forecast of what a borrower will ultimately pay at closing.
Affordability worsens across most states
MBA said its payment-to-income measure deteriorated in 39 states. Idaho recorded the highest state index at 254.9, followed by Nevada at 238.6, Rhode Island at 220.4, Arizona at 210.3 and Tennessee at 199.8. Louisiana recorded the lowest reading at 116.6, followed by Connecticut, West Virginia, Alaska and Iowa.
Those rankings compare payment burdens relative to earnings, rather than ranking states by home price alone. They also reflect the mix of mortgage applications submitted in each market.
For lenders and real estate professionals, the September reversal adds another measure of the pressure on qualified buyers. A higher payment can reduce the purchase price a household can support under debt-to-income underwriting limits, even when the borrower has adequate savings for a down payment.
The latest Freddie Mac weekly mortgage-rate survey, which measures a different period and borrower sample, showed the 30-year fixed-rate average at 7.24% on October 29. That later weekly observation should not be substituted for MBA’s September application data.
September’s increase does not establish where rates or payments will move next. It does show that the recent easing in homebuyer financing costs was vulnerable to a relatively modest shift in mortgage rates.
