Homebuyer affordability improved in July as the median monthly mortgage payment fell to $2,175, down from $2,191 in June, despite a 2.2% increase from a year earlier. Wage growth outpaced mortgage payment increases, enhancing affordability. Affordability varied by state and racial groups, with lower payments for FHA applicants but higher for conventional loans. The mortgage payment-to-rent ratio rose, and future affordability depends on mortgage rates, home prices, and inventory.