Mortgage Payments Decrease in June

Affordability appears to be improving for homebuyers. According to the Mortgage Bankers Association’s Purchase Application Payment Index (PAPI)—which measures how new mortgage payments change over time—the national median mortgage payment decreased from $2,211 in May to $2,172 in June.

The national PAPI decreased 1.8% to 163.7 in June from 166.6 in May, indicating improved buyer affordability. Additionally, median earnings were up 4.6% compared with one year ago, improving affordability even further.

Where have payments changed the most?

While the nationwide PAPI declined to 163.7, the index reached over 200 in some states. These states include Idaho, which had a reading of 255.7; Nevada, which had a reading of 249.5; and Arizona, which had a reading of 219.2.

However, some states are becoming much more affordable. The states where the PAPI reading was the lowest include Louisiana, which had a reading of 116.9; Washington, D.C., which had a reading of 120.4; and Connecticut, which had a reading of 129.3.

Homebuyer affordability has improved. Still, buyer demand remains low

• Homebuyer Activity Remains Slow: As inventory grows, buyer competition has eased. As of February 2025, homes on average stayed on the market for 23 days, which was six days more than last year.
• Use of Concessions Grows as Buyer Demand Weakens: Weak buyer demand has made the use of concessions a popular choice to get buyers in the door. In Q1 2025, buyers received concessions in 44.4% of home-sale transactions.