Here are two stats that help illustrate how much the current interest rates are affecting the market:
- If comparing a hypothetical 20% down payment buyer of a $600K house today against the same from a year ago, the current buyer’s monthly mortgage payment would be over $1,100 higher than last year’s buyer ($13,500 annually).
- If a hypothetical buyer using 20% down was pre-approved for $700K a year ago, the current interest rate has reduced their buying power down to $500K. Yes, $200K less.
Buyers are basically having the rug pulled out from under them, and the days of competing offers on every listing are gone as long as rates remain this high. Check out the stats for your town HERE, keeping in mind that these sale prices reflect buyers who were lucky enough to get interest rates around 1.5% lower than they are now.
