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Homebuyer budgets are essentially flat from last year, up just 0.3% year over year nationwide in the three months ending April 30, the slowest growth rate since June 2020. That’s according to an analysis of the average maximum price set by users in their online home searches.

Declining budgets are a leading indicator that home-price growth has passed its peak and will slow in the coming months. 

The dip is also a sign that high mortgage rates are having a major impact on how much money buyers can spend on homes, with more of their budgets going toward interest payments. 

Budgets hit peak growth at a rate of 12.2% in April 2021. That was three months before home-sale prices hit their peak growth, increasing a record 22.6% year over year in July 2021.