Housing affordability saw another setback in May, as payments for newly originated purchase loans increased for a third straight month, according to the Mortgage Bankers Association. 

The median monthly payment amount came in at $2,198, rising 2.1% from $2,158 in April. The amount was at its most elevated since last May, when the number clocked in a few dollars higher at $2,211, MBA reported. 

"Affordability conditions weakened in May, as rising mortgage rates, combined with increasing loan application amounts, drove mortgage payments higher," said Edward Seiler, MBA's associate vice president of housing economics, in a press release. 

The trade group's purchase applications payment index, which tracks affordability trends based on factors such as rates, home prices and wage growth, similarly climbed up 2.2% to a reading of 159.4 in May, up from 156.0 a month earlier. Higher marks indicate declining affordability, with data collected from MBA's weekly lender surveys. By comparison, in May 2025, the PAPI score landed at 164.9. 

"While affordability conditions remain improved compared to a year ago, the monthly increase underscores how sensitive prospective homebuyers remain to changes in interest rates and home prices," Seiler added. 

Weekly rate data from Freddie Mac lends credence to MBA's conclusions, with the government-sponsored enterprise reporting the 30-year fixed average in May steadily rising by over 20 basis points and hitting highs not seen since last summer. Since the end of last month, rates have shown signs of retreating but remain near their May peaks.  

Although rising home sales toward the end of spring provided some positive news for the real estate and lending industries, geopolitical developments stole much of the favorable momentum and sentiment observed at the beginning of the season. 

"Demographic tailwinds and years of underbuilding continue to support the need for housing, but elevated mortgage rates and economic uncertainty remain significant obstacles to turning that demand into home purchases," noted First American Deputy Chief Economist Odeta Kushi in commentary released this week.

"The housing market remains caught between strong underlying demand and near-term affordability constraints," she said. 

Weakening affordability appears nationwide

On a month-to-month basis, higher mortgage payments became the norm across loan types and demographics, MBA reported. 

"The decrease in affordability was widespread, with conditions declining in 33 states," Seiler said. 

• The median payment amount for conventional purchase mortgages originated in May rose 2.1% to $2,211 compared to $2,166 a month earlier. 
• For new Federal Housing Administration-backed mortgages, amounts jumped 2.4% to $1,873 from $1,829 in April.  
• Homebuyers saw slight relief in the new residential construction market, as median payments inched downward to $2,173 in May from $2,188 in MBA's April report. 

Declining affordability is affecting all racial groups similarly, MBA also found. The PAPI score for white households grew by 2.2% to 160.7 in May compared to 157.3 one month prior. 

Meanwhile, for Black households, the index reading came in at a more elevated 165, also 2.2% higher from April's 161.5. 

The affordability index for Hispanic homeowners across the country grew by the same margin to a mark of 147.5, up from 144.3 month over month.