Homebuyers on a $2,500 Monthly Budget Have Lost $118,000 in Spending Power This Year Amid Surge in Mortgage Rates

Source: Redfin — 

A homebuyer on a $2,500 monthly budget has lost nearly $120,000 in spending power since the end of last year as mortgage rates have nearly doubled.

That buyer can afford a $399,750 home at today’s mortgage rate of roughly 6%. That’s a staggering $117,750 less than the $517,500 home the same budget could have bought at the end of last year when rates were at a near-record-low of 3%. To put it another way, the monthly payment on a $399,750 home would rise more than $500 with the higher mortgage rate, from $1,931 to $2,500.