Mortgage Affordability Improves in September

Affordability got a little bit better for homebuyers in September as borrowing conditions improved slightly. According to the Mortgage Bankers Association’s Purchase Applications Payments Index, the monthly mortgage payment declined from $2,100 to $2,067 in September. Compared with the same time last year, however, mortgage payments are still up by $26, or by about 1.3%.

For FHA loan applicants, conditions improved even further. The national median mortgage payment for FHA applicants was $1,792 in September, compared with $1,863 in August. For conventional loan applicants, the national median mortgage payment was $2,105 in September, down from $2,112 in August.

“Affordability improved for the fourth consecutive month, supported by lower mortgage rates and a growing housing supply,” said Edward Seiler, MBA’s Associate Vice President of Housing Economics and Executive Director of the Research Institute for Housing America. “Affordability conditions have strengthened steadily throughout 2025, and with mortgage rates expected to stabilize and home prices remaining flat, we anticipate slightly stronger housing demand heading into 2026.”