To put it simply, this rate hike translates to a monthly mortgage payment of $2,895 on a median-priced $428,000 home, about $200 more than buyers would have paid six weeks ago.
Rates add pressure in swing states
The impact of rising mortgage rates is also felt in several swing states where housing affordability is an especially significant issue.
In states like Nevada and Arizona, where the median home prices exceed the national average, a typical buyer with a $3,000 budget has lost about $33,000 in purchasing power over the past six weeks.
In states with more moderate prices, like Georgia and North Carolina, buyers with a $2,500 budget now face a $27,750 drop in purchasing power, as they’re limited to homes costing around $368,750 at the new rates.
In Michigan, Pennsylvania, and Wisconsin, where home prices and budgets are generally lower, the recent rate hikes mean that a buyer with a $2,000 monthly budget now has $22,250 less purchasing power than just six weeks ago, limiting them to homes priced around $295,000.
Source: mpamag.com