The national median payment made by purchase loan applicants was $2,162 during July, according to the latest data from the Mortgage Bankers Association’s (MBA) Purchase Applications Payment Index (PAPI). July’s payment level was mostly unchanged from June but was up by $318 from one year ago, a 17.2% spike.
The national median mortgage payment for conventional loan applicants was $2,197, down from $2,205 in June and up from $1,892 in July 2022. The national median mortgage payment for FHA loan applicants was $1,854 in July, up from $1,824 in June and up from $1,461 in July 2022.
“Prospective homebuyers continued to face challenging conditions in July, with elevated and volatile mortgage rates and low housing inventory serving as a formidable one-two punch that suppressed mortgage applications and sales activity,” said Edward Seiler, MBA’s associate vice president for housing economics and executive director of the Research Institute for Housing America. “With mortgage rates currently above 7% and expected to remain above 6% by the end of the year, affordability will remain a hurdle for many households looking to buy a home.”