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October 2023 » thefivestar.com 73 October 2023 J O U R N A L faced discrimination from their previous landlord. Roughly 9% of LGBTQ+ survey respondents who moved in the last year did so because they faced discrimination in their previous neighborhood. An addi- tional 8% moved because of discrimina- tion from their previous landlord. MORTGAGE APP PAYMENTS ROSE IN AUGUST DESPITE DECLINE IN HOMEBUYER AFFORDABILITY H omebuyer affordability de- clined in August, with the na- tional median payment applied for by purchase applicants increasing to $2,170 from 2,162 in July. This is according to the Mortgage Bankers Association's (MBA) Purchase Applications Payment Index (PAPI), which measures how new monthly mortgage payments vary across time relative to income using data from MBA's Weekly Applications Survey (WAS). "Prospective homebuyers' budgets continue to be impacted by the combi- nation of high home prices and mort- gage rates that remain higher than 7%," said Edward Seiler, MBA's Associate VP, Housing Economics, and Executive Director, Research Institute for Housing America. "If mortgage rates shift lower in 2024, as we anticipate, the combina- tion of rising inventory levels and lower rates should lead to stronger demand for buying a home." An increase in MBA's PAPI (indicative of declining borrower affordability con- ditions) means that the mortgage pay- ment to income ratio (PIR) is higher due to increasing application loan amounts, rising mortgage rates, or a decrease in earnings. A decrease in the PAPI (indicative of improving borrower affordability conditions) occurs when loan applica- tion amounts decrease, mortgage rates decrease, or earnings increase. The national PAPI increased 0.4% to 175.4 in August from 174.7 in July. With this increase, the PAPI is now only two points lower than its record level in May 2023. Median earnings were up 4.2% compared to one year ago, and while payments increased by 18.0%, the strong earnings growth means that the PAPI is up 13.2% on an annual basis. For borrowers applying for low- er-payment mortgages (the 25th percen- tile), the national mortgage payment decreased to $1,444 in August from $1,451 in July. The Builders' Purchase Application Payment Index (BPAPI) showed that the median mortgage payment for purchase mortgages from MBA's Builder Applica- tion Survey increased from $2,526 in July to $2,609 in August. Additional Key Findings of MBA's Purchase Applications Payment Index (PAPI)—August 2023 » The national median mortgage payment was $2,170 in August—up $8 from July. It is up $331 from one year ago, equal to an 18.0% increase. » The national median mortgage pay- ment for FHA loan applicants was at a record high of $1,909 in August, up from $1,854 in July and from $1,469 in August 2022. » The national median mortgage pay- ment for conventional loan applicants was $2,187, down from $2,197 in July and up from $1,901 in August 2022. » The top five states with the highest PAPI were: Idaho (269.6), Nevada (265.7), Arizona (238.6), Florida (227.2), and California (226.8). » The top five states with the lowest PAPI were Alaska (119.7), Connecticut (126.0), Washington, D.C. (127.4), Ver- mont (128.7), and West Virginia (130.3). » Homebuyer affordability decreased slightly for Black households, with the national PAPI increasing from 173.8 in July to 174.5 in August. » Homebuyer affordability decreased slightly for Hispanic households, with the national PAPI increasing from 166.5 in July to 167.1 in August. » Homebuyer affordability decreased slightly for White households, with the national PAPI increasing from 176.0 in July to 176.7 in August.