The national median mortgage payment dropped slightly at the end of 2024, but on a year-over-year basis, the national median mortgage payment is up by 3.5%
Jan. 30, 2025
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Homebuyer affordability improved slightly in December, but overall, monthly payments remain flat.
Homebuyer affordability stagnated at the end of the year, with the national median mortgage payment decreasing in December to $2,127 from $2,133 the month prior. This is according to the Mortgage Bankers Association's Purchase Applications Payment Index (PAPI), which dropped by just 0.3% month-over-month. While a decrease in the index bodes well for housing affordability overall, the median mortgage payment is still up by 3.5%, or $72 from one year ago.
“Homebuyer affordability conditions were essentially flat in December, the result of somewhat volatile mortgage rate movements and moderating home-price growth,” said Edward Seiler, MBA’s Associate Vice President, Housing Economics, and Executive Director, Research Institute for Housing America. “2024 was a sluggish year for home sales because of weak affordability conditions throughout the country. MBA expects 2025 conditions will improve as housing supply increases, giving prospective buyers more options and putting less pressure on their budgets.”Read more
