This is How Much Purchasing Power Homebuyers Lost This Year
By: Alcynna Lloyd, HousingWire, 10/23/18
Rising interest rates and mortgage payments could turn potential buyers away
(I was just telling someone about how much a little interest rate rise will reduce their buying power and then I see this):
Home price growth and rate hikes have contributed to an uptick in monthly mortgage payments nationwide, leaving many prospective buyers speculating when it will be the right time to purchase a home.
According to data collected by Redfin, at the beginning of the year, a homebuyer with a monthly housing budget of $2,500 and a 20% down payment could afford a home priced at $473,750. However, rates have now climbed above 4.75%, reducing $29,750 of a homebuyer’s purchasing power.