Rising Mortgage Rates Impact Buying Power


Rising mortgage rates impacting buying power isn’t a surprise in today’s market. Realtor.com recently released new data showing how much actual monthly mortgage payments are rising around the country. “As we see rates rise this fall, we do see them taking on a bigger role in affordability and constricting buying power in certain markets,” observes Javier Vivas, director of economic research for Realtor.com.

According to Realtor.com, “the average U.S. monthly mortgage payment has jumped 15.8%, or $223 per month, since last year.” In September 2017, that number was $1,413, rising one year later to $1,636 based on a median price of $294,900. “In the top 20 largest markets combined, 68% of the incremental payment increase is now coming from a rise in rates,” Vivas explains. “This is a big shift from earlier this spring when rates accounted for just 36% of the payment increase,” he adds.

Read more on: https://www.forbes.com/sites/ellenparis/2018/10/22/rising-mortgage-rates-impact-buying-power/#650668b45a4b

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