{"id":16,"date":"2023-08-25T13:19:15","date_gmt":"2023-08-25T13:19:15","guid":{"rendered":"https:\/\/nikolazafirovski-c21begginsenterprises.sites.c21.homes\/?p=16"},"modified":"2023-08-25T13:19:15","modified_gmt":"2023-08-25T13:19:15","slug":"buyers-on-3k-budget-lost-71k-in-purchasing-power","status":"publish","type":"post","link":"https:\/\/nikolazafirovski-c21begginsenterprises.sites.c21.homes\/?p=16","title":{"rendered":"Buyers on $3K Budget Lost $71K in Purchasing Power"},"content":{"rendered":"
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August 2023<\/div>\n
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If a buyer on a $3K monthly budget can get a 7.4% mortgage, the range of homes they can afford is less expensive than the ones they looked at last year.<\/div>\n<\/div>\n
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SEATTLE \u2013 Historically high mortgage rates are cutting into buyers\u2019 budgets: A buyer on a $3,000 monthly budget, for example, can afford a $429,000 home with a 7.4% mortgage rate \u2013 roughly the daily average on Aug. 23.<\/p>\n

Year-to-year, that buyer has lost $71,000 in purchasing power (since August 2022), when they could have bought a $500,000 home with an average rate of about 5.5%, according to a\u00a0report<\/a>\u00a0from Redfin.<\/p>\n

The daily average 30-year mortgage rate was 7.36% on Aug. 23, down slightly from a peak the day before but still close to its highest level in more than 20 years.<\/p>\n

To look at affordability another way, the monthly mortgage payment on the typical U.S. home (about $380,000) is roughly $2,700 with a 7.36% mortgage rate. The monthly payment would have been $400 lower \u2013 around $2,300 \u2013 with last year\u2019s 5.5% rate.<\/p>\n

The combination of high monthly mortgage payments and historically low housing inventory has pushed many would-be homebuyers out of the market. Home-purchase applications dropped to their lowest level in nearly 30 years during the week ending Aug.18.<\/p>\n

\u201cThe buyers out there right now are the ones who need to move,\u201d says Phoenix Redfin agent Kim Lotz. \u201cI\u2019m working with one couple from out of state who are coming to Phoenix because of a job transfer; they don\u2019t have the luxury of waiting for mortgage rates to come down.\u201d<\/p>\n

\u201cSome buyers are hoping they can get a home for under asking price to make up for high interest rates because they\u2019re hearing the housing market is slow,\u201d adds Nashville Redfin agent Kristin Sanchez. \u201c But what\u2019s happening nationally isn\u2019t necessarily true here. Tennessee is a hot spot for people relocating from other states. There are plenty of jobs, and the area is starving for inventory. So despite high rates, there are more house hunters than houses for sale. Homes that are priced competitively and in good condition are typically selling at or just over asking price with two or three offers.\u201d<\/p>\n

\u00a9 2023 Florida Realtors\u00ae<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

August 2023 If a buyer on a $3K monthly budget can get a 7.4% mortgage, the range of homes they can afford is less expensive than the ones they looked at last year. SEATTLE \u2013 Historically high mortgage rates are cutting into buyers\u2019 budgets: A buyer on a $3,000 monthly budget, for example, can afford […]<\/p>\n","protected":false},"author":145509,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-16","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/nikolazafirovski-c21begginsenterprises.sites.c21.homes\/index.php?rest_route=\/wp\/v2\/posts\/16","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nikolazafirovski-c21begginsenterprises.sites.c21.homes\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nikolazafirovski-c21begginsenterprises.sites.c21.homes\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nikolazafirovski-c21begginsenterprises.sites.c21.homes\/index.php?rest_route=\/wp\/v2\/users\/145509"}],"replies":[{"embeddable":true,"href":"https:\/\/nikolazafirovski-c21begginsenterprises.sites.c21.homes\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16"}],"version-history":[{"count":1,"href":"https:\/\/nikolazafirovski-c21begginsenterprises.sites.c21.homes\/index.php?rest_route=\/wp\/v2\/posts\/16\/revisions"}],"predecessor-version":[{"id":17,"href":"https:\/\/nikolazafirovski-c21begginsenterprises.sites.c21.homes\/index.php?rest_route=\/wp\/v2\/posts\/16\/revisions\/17"}],"wp:attachment":[{"href":"https:\/\/nikolazafirovski-c21begginsenterprises.sites.c21.homes\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nikolazafirovski-c21begginsenterprises.sites.c21.homes\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nikolazafirovski-c21begginsenterprises.sites.c21.homes\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}