Mortgage Payments Become More Affordable for the Fourth Straight Month

There’s good news for homebuyers heading into year’s end — mortgage affordability continues to improve. According to new data from the Mortgage Bankers Association (MBA), the national median monthly mortgage payment fell again in September, marking the fourth consecutive month of improvement.

The MBA’s Purchase Applications Payment Index (PAPI) — which tracks average mortgage payments based on loan amounts applied for by borrowers — shows the median payment dropped to $2,067 in September, down from $2,100 the previous month. The decline reflects both lower mortgage rates and an increase in available housing supply, helping more buyers manage payments within their budgets.

Affordability on the Rise

Edward Seiler, MBA’s Associate Vice President of Housing Economics and Executive Director of the Research Institute for Housing America, said the trend is encouraging.“Affordability improved for the fourth consecutive month, supported by lower mortgage rates and a growing housing supply,” Seiler noted. “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.”

Among borrowers seeking lower-payment loans, the national median payment fell to $1,418, extending the improvement across multiple borrower segments.

What It Means for Buyers

With rates easing and prices holding steady, housing affordability is gradually improving after years of volatility. Buyers entering the market this winter could see a rare combination of softer rates, stable pricing, and expanding inventory — a favorable setup heading into 2026.

Stay informed with more mortgage and housing insights at NewHomeApproval.com.