Housing market chills as mortgage rates, prices scare buyers

Source: AP News — 

NEW YORK (AP) — Kyle Tomcak was looking for a home for his in-laws in the suburbs around Denver, something priced close to $450,000.

Tomcak became dispirited as he lost out to investors fronting cash offers $100,000 over the asking price. Then mortgage rates ballooned, putting his price range out of reach.

“All of a sudden, your buying power is less … even though your payments are the same,” he said.

Tomcak, 39 and a project manager for a commercial painting company from Aurora, Colorado, had hoped to lock in a monthly mortgage payment of $2,350. His mortgage consultant recommended dropping the maximum price he’d pay for a home, first to $300,000 then to $200,000.