Mortgage application payments dropped in June 2025, offering a glimmer of relief to homebuyers as affordability saw modest improvement. According to the Mortgage Bankers Association (MBA), the national median monthly payment applied for by applicants fell to $2,217, down from $2,243 in May. This decline coincides with lower mortgage rates in June, which helped to slightly ease financial pressures on prospective homeowners.
Despite the month-over-month improvement, housing affordability remains a significant hurdle in the real estate market. While the reduction in payment amounts is encouraging, high home prices and relatively elevated mortgage rates continue to challenge potential buyers, especially first-time homeowners. Industry experts remain cautiously optimistic, noting that sustained affordability gains will depend on broader economic trends, including interest rate policies and home price moderation.
Read more about Arizona home prices.