Median US Mortgage Payment Rises to $2,131 in March, Eroding Affordability

The Mortgage Bankers Association's Purchase Applications Payment Index measures affordability through the monthly principal and interest payments on new home-purchase loans. Rising mortgage rates and larger loan amounts directly squeeze household budgets and may weaken housing demand, making payment trends an important gauge of pressure on US homebuyers.

The MBA's latest data showed that the median monthly payment on new home-purchase loans rose to $2,131 in March, up 3.4% from February. Although the amount remained slightly below its year-earlier level, higher interest rates and larger loan amounts in March reversed the recent improvement and once again reduced affordability for prospective buyers.