Mortgage Payments Drop in June, Boosting Home Affordability for Buyers

The national median mortgage payment for home buyers fell nearly 2% in June compared to the previous month, according to the latest data from the Mortgage Bankers Association (MBA).

The MBA’s Purchase Applications Payment Index (PAPI) — which tracks monthly mortgage payments based on new loan applications — reported that the median monthly mortgage payment dropped to $2,172 in June from $2,211 in May. For borrowers seeking lower-payment mortgage options, the median payment decreased to $1,500 from $1,512.

Edward Seiler, MBA’s Associate Vice President of Housing Economics and Executive Director of the Research Institute for Housing America, called this an encouraging trend for today’s homebuyers.

“Affordability conditions improved in June, a positive sign for prospective home buyers looking to take advantage of slightly lower mortgage rates and moderating home prices,” Seiler said.

Along with falling payments, the median purchase application amount also declined to $324,800, indicating some relief in housing costs. With more inventory entering the housing market in many parts of the country, experts expect home price growth to stabilize — a welcome change for first-time homebuyers and those looking to make a move in 2025.

Key Takeaways for Buyers:

• Mortgage payments are trending down, improving affordability.

• Lower rates + more inventory could mean better buying opportunities.

• Now may be the time to explore home loan options before rates shift again.