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The PAPI report showed a 2.5% increase in median loan payments applied for by applicants, up to $2,165 from $2,112 in April. It was $268 higher than a year ago, equal to a 14.1% jump.
For borrowers applying for lower-payment mortgages, the national mortgage payment increased to $1,462 month over month.
“Homebuyer affordability eroded further in May as prospective buyers continue to grapple with high-interest rates and low housing inventory,” said Edward Seiler, associate vice president of housing economics at MBA. “While supply remains low, we do expect that inventory will pick up in the near term, which will provide more opportunities for borrowers to buy a home.”
Read next: New home sales: Mortgage industry reacts
The estimated supply of new homes for sale in May was 428,000, representing a supply of 6.7 months at the current sales pace. Meanwhile, mortgage rates have hovered in the 6-7% range in the first half of the year.
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