US Mortgage Application Payment Index Falls for Sixth Straight Month in November

On Friday, the Mortgage Bankers Association (MBA) reported that homebuyer affordability improved again in November, marking the sixth consecutive monthly improvement, according to its Purchase Applications Payment Index (PAPI). The national median mortgage payment applied for by purchase applicants fell to $2,034 in November, down from $2,039 in October.

The PAPI measures how new monthly mortgage payments vary over time relative to income, using data from MBA’s Weekly Applications Survey. An increase in the index signals worsening borrower affordability as the mortgage payment-to-income ratio (PIR) rises, while a decrease indicates improving affordability conditions.

The national PAPI fell 0.2% to a reading of 149.6 in November, down from 149.8 in October. Year-over-year, affordability improved sharply, with the index down 7.3%, as earnings growth outpaced mortgage payments. Mortgage payments alone were down 4.6% from a year earlier.

For borrowers applying for lower-payment mortgages at the 25th percentile, the national mortgage payment increased to $1,409 in November, up from $1,402 in October.

Commenting on the report, MBA Associate Vice President of Housing Economics and Executive Director of the Research Institute for Housing America Edward Seiler said:

“Affordability conditions have now improved for six straight months as lower mortgage rates and strong household earnings growth have increased prospective buyers’ purchasing power. The national median mortgage payment was down $99 compared to November 2024. MBA expects that affordability conditions will continue to improve in 2026, with house prices forecast to fall nationally by 0.3% and mortgage rates forecast to remain around 6.4% throughout the year.”