The housing market has never been more out of reach for people.
— Win Smart, CFA (@WinfieldSmart) June 3, 2023
The Housing Market Has Never Been This Unaffordable For New Buyers
Americans looking for a new home are facing the least affordable market ever, according to data from the Mortgage Bankers Association.
The group’s Purchase Applications Payment Index (PAPI) increased 0.5% in April to a record high of 172.3. A higher reading indicates declining borrower affordability conditions, due to either increasing loan amounts, rising mortgage rates, or a decrease in earnings.
“This hit a new record because not only have interest not retreated from the high 6s, but the typical application amount has jumped, all faster than incomes have grown,” Edward Seiler, MBA’s associate vice president for housing economics, told Insider.
Meanwhile, the national median mortgage payment was $2,112 in April, up from $2,093 the prior month, per MBA data.