According to data provided by the Mortgage Bankers Association, Americans who are searching for a new place to live are encountering the most unaffordable housing market ever witnessed.

The Purchase Applications Payment Index (PAPI) of the association rose by 0.5% in April, reaching an all-time high of 172.3. This index serves as an indicator of declining affordability for borrowers, which can be attributed to various factors such as increasing loan amounts, rising mortgage rates, or a decrease in earnings.

Edward Seiler, the associate vice president for housing economics at MBA, explained that this record was set because mortgage rates, which have remained in the high 6s, have not retreated, and the typical loan application amount has surged at a faster pace than incomes have grown.

In April, the national median mortgage payment stood at $2,112, an increase from the previous month's $2,093, as reported by MBA.

The PAPI readings were particularly high in states such as Idaho (255.6), Nevada (246.3), Arizona (226.1), Florida (216.6), and California (213.9).

Since the Federal Reserve initiated a series of interest rate hikes in 2022, the mortgage rates for 30-year fixed loans have more than doubled, soaring from 3% to over 7%.

Currently, with the Federal Reserve having implemented 10 consecutive rate hikes and the upcoming June meeting looming, mortgage rates are hovering just below 7%.

Seiler expressed that this situation presents the most challenging circumstances for new home buyers since the end of the Great Recession. While current homeowners who were fortunate enough to secure a 2.75% interest rate in 2022 find themselves in an advantageous position, those seeking to purchase their first home or move to a different property face a highly daunting prospect.