{"id":452522,"date":"2021-03-08T08:03:37","date_gmt":"2021-03-08T13:03:37","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=452522"},"modified":"2021-03-08T08:03:37","modified_gmt":"2021-03-08T13:03:37","slug":"homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\/","title":{"rendered":"Homebuyers on a $2,500 Monthly Budget Stand to Lose $23,250 in Spending Power as Mortgage Rates Rise from Record Lows"},"content":{"rendered":"
\n

Higher mortgage rates would likely make homebuyers more cost conscious and less likely to bid up home prices<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n SEATTLE<\/span>, March 8, 2021<\/span> \/PRNewswire\/ —\u00a0(NASDAQ: RDFN) \u2014 A homebuyer would lose $23,250<\/span> in spending power with a mortgage rate of 3.25% versus a 2.75% rate, where they were sitting earlier this year, according to a new report<\/a><\/u> from Redfin (www.redfin.com<\/a><\/u>), the technology-powered real estate brokerage. At a 3.25% interest rate, a homebuyer can afford a $506,000<\/span> home for $2,500<\/span> per month, down from the $529,250<\/span> they could afford on the same budget with a 2.75% rate. To put it another way, the monthly payment on a $506,000<\/span> home would rise $110<\/span> with the higher mortgage rate, from $2,390<\/span> to $2,500<\/span>. <\/p>\n

\n

\n
\n \"Redfin
\n <\/a>\n <\/p>\n<\/p><\/div>\n

Interest rates started to rise in mid-February after 30-year fixed mortgage rates reached a record low of 2.65% in the beginning of January, a continuation of five months of sub-3% rates as the Fed worked to stimulate the economy during the pandemic-driven recession. Partly as a result of record-low rates, home prices rose a near-record 14% year over year in January. The average mortgage rate hit 3.02% in the week ending March 4\u2014the first time it has risen above 3% in seven months\u2014and is likely to continue to increase, at least slightly, as the economy recovers. <\/p>\n

Growth in the number of homes that have gone under contract has started to slow in recent weeks, but it’s too early to tell whether the trend is a result of winter storms, a shortage of homes for sale, or rising mortgage rates or whether the trend is likely to continue into spring or not. <\/p>\n

“If the $1.9 trillion<\/span> economic stimulus package that’s set to provide cash relief to Americans and get people back to work is successful, interest rates are likely to inch back up to pre-pandemic levels of about 3.5%. That would alter the dynamics of the housing market, though it wouldn’t necessarily put a damper on it,” said Redfin Chief Economist Daryl Fairweather<\/span>. “The financial relief coming to families earning less than $150,000<\/span> will give more of them the desire and means to buy a home. That will result in more demand for affordable homes. That’s different from what we’re seeing now, which is a housing market driven by wealthy people purchasing relatively expensive homes. Higher mortgage rates will also make buyers more price conscious and less likely to bid 10% or more over asking, so we could see some of the intense competition slow down.”<\/p>\n

Forty-four percent of respondents to a recent Redfin survey said mortgage rates rising above 3.5% would have no impact on their homebuying plans, while 10% would cancel their plans to buy a home. <\/p>\n

“The small increase in mortgage rates has had zero impact on buyers so far,” said Seattle Redfin agent Ben Stanfield<\/span>. “Rates are still historically low and they’re still keeping buyers in the market. Even though rates are creeping up, they’re not increasing nearly as quickly as home prices. If you can buy, it’s a good idea to buy now before homes become even more expensive.”<\/p>\n

With a 3.25% interest rate, 68.4% of homes nationwide that were for sale any time between January 26 and February 25<\/span> were affordable on a $2,500<\/span> monthly budget. With a 2.75% rate, 70.1% of homes were affordable on that budget. <\/p>\n

“Over the next few months, it will be important to keep an eye on inflation,” Fairweather said. “Inflation has the potential to change every aspect of homebuyers’ finances: It could change earnings, change budgets and change mortgage rates.”<\/p>\n

\n Buyers have fewer options with a 3.25% interest rate in every metro\u2014especially Denver<\/span>, Sacramento<\/span> and Riverside<\/span><\/b>\n <\/p>\n

With a 3.25% interest rate, 52.5% of homes for sale in Denver<\/span>between January 26 and February 25<\/span> were affordable on a $2,500<\/span> monthly budget, versus 56.3% with a 2.75% rate. In Sacramento<\/span>, 47% of homes for sale were affordable with a 3.25% rate, versus 50.6% with a 2.75% rate. The 3.7 percentage-point difference in each of those places is bigger than any other metro. Next comes Riverside, CA<\/span>, with a 3.4 percentage-point difference (57.3% versus 60.7%). <\/p>\n

\n Birmingham<\/span>, Cleveland<\/span> and Detroit<\/span> each have just a 0.4 percentage-point difference in the share of homes affordable with the two different interest rates. In Birmingham<\/span>, 87.3% of homes for sale were affordable on a $2,500<\/span> monthly budget with a 3.25% rate, just slightly fewer than 87.7% with a 2.75% rate. In Cleveland<\/span> it’s 92% versus 92.4%, and in Detroit<\/span> it’s 92.9% versus 93.3%. <\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

\n
\n Share of homes for sale affordable on a $2,500 monthly mortgage budget, 2.75% interest rate versus 3.25% interest rate<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n Metro area<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n Share of homes affordable on a $2,500 payment @ 2.75%<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n Share of homes affordable on a $2,500 payment @ 3.25%<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n Change in share of homes affordable, 2.75% vs. 3.25%<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Atlanta, GA<\/span>\n <\/p>\n<\/td>\n

\n

\n 79.5%<\/span>\n <\/p>\n<\/td>\n

\n

\n 77.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.7 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Austin, TX<\/span>\n <\/p>\n<\/td>\n

\n

\n 65.5%<\/span>\n <\/p>\n<\/td>\n

\n

\n 63.3%<\/span>\n <\/p>\n<\/td>\n

\n

\n -2.2 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Baltimore, MD<\/span>\n <\/p>\n<\/td>\n

\n

\n 80.2%<\/span>\n <\/p>\n<\/td>\n

\n

\n 78.5%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.7 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Birmingham, AL<\/span>\n <\/p>\n<\/td>\n

\n

\n 87.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n 87.3%<\/span>\n <\/p>\n<\/td>\n

\n

\n -0.4 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Boston, MA<\/span>\n <\/p>\n<\/td>\n

\n

\n 36.5%<\/span>\n <\/p>\n<\/td>\n

\n

\n 33.8%<\/span>\n <\/p>\n<\/td>\n

\n

\n -2.7 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Buffalo, NY<\/span>\n <\/p>\n<\/td>\n

\n

\n 92.8%<\/span>\n <\/p>\n<\/td>\n

\n

\n 92.0%<\/span>\n <\/p>\n<\/td>\n

\n

\n -0.7 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Charlotte, NC<\/span>\n <\/p>\n<\/td>\n

\n

\n 79.9%<\/span>\n <\/p>\n<\/td>\n

\n

\n 78.4%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.5 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Chicago, IL<\/span>\n <\/p>\n<\/td>\n

\n

\n 76.3%<\/span>\n <\/p>\n<\/td>\n

\n

\n 74.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.6 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Cincinnati, OH<\/span>\n <\/p>\n<\/td>\n

\n

\n 86.4%<\/span>\n <\/p>\n<\/td>\n

\n

\n 85.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n -0.8 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Cleveland, OH<\/span>\n <\/p>\n<\/td>\n

\n

\n 92.4%<\/span>\n <\/p>\n<\/td>\n

\n

\n 92.0%<\/span>\n <\/p>\n<\/td>\n

\n

\n -0.4 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Columbus, OH<\/span>\n <\/p>\n<\/td>\n

\n

\n 88.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n 87.4%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.2 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Dallas, TX<\/span>\n <\/p>\n<\/td>\n

\n

\n 77.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n 75.4%<\/span>\n <\/p>\n<\/td>\n

\n

\n -2.1 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Denver, CO<\/span>\n <\/p>\n<\/td>\n

\n

\n 56.3%<\/span>\n <\/p>\n<\/td>\n

\n

\n 52.5%<\/span>\n <\/p>\n<\/td>\n

\n

\n -3.7 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Detroit, MI<\/span>\n <\/p>\n<\/td>\n

\n

\n 93.3%<\/span>\n <\/p>\n<\/td>\n

\n

\n 92.9%<\/span>\n <\/p>\n<\/td>\n

\n

\n -0.4 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Hartford, CT<\/span>\n <\/p>\n<\/td>\n

\n

\n 88.0%<\/span>\n <\/p>\n<\/td>\n

\n

\n 86.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.3 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Houston, TX<\/span>\n <\/p>\n<\/td>\n

\n

\n 80.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n 79.1%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.4 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Indianapolis, IN<\/span>\n <\/p>\n<\/td>\n

\n

\n 90.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n 89.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.0 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Jacksonville, FL<\/span>\n <\/p>\n<\/td>\n

\n

\n 83.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n 82.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.0 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Kansas City, MO<\/span>\n <\/p>\n<\/td>\n

\n

\n 84.8%<\/span>\n <\/p>\n<\/td>\n

\n

\n 83.5%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.3 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Las Vegas, NV<\/span>\n <\/p>\n<\/td>\n

\n

\n 79.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n 78.0%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.7 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Los Angeles, CA<\/span>\n <\/p>\n<\/td>\n

\n

\n 17.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n 15.8%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.8 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Louisville, KY<\/span>\n <\/p>\n<\/td>\n

\n

\n 90.1%<\/span>\n <\/p>\n<\/td>\n

\n

\n 89.5%<\/span>\n <\/p>\n<\/td>\n

\n

\n -0.6 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Memphis, TN<\/span>\n <\/p>\n<\/td>\n

\n

\n 89.1%<\/span>\n <\/p>\n<\/td>\n

\n

\n 88.1%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.0 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Miami, FL<\/span>\n <\/p>\n<\/td>\n

\n

\n 61.3%<\/span>\n <\/p>\n<\/td>\n

\n

\n 59.5%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.7 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Milwaukee, WI<\/span>\n <\/p>\n<\/td>\n

\n

\n 89.0%<\/span>\n <\/p>\n<\/td>\n

\n

\n 88.1%<\/span>\n <\/p>\n<\/td>\n

\n

\n -0.9 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Minneapolis, MN<\/span>\n <\/p>\n<\/td>\n

\n

\n 79.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n 77.5%<\/span>\n <\/p>\n<\/td>\n

\n

\n -2.1 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Nashville, TN<\/span>\n <\/p>\n<\/td>\n

\n

\n 75.5%<\/span>\n <\/p>\n<\/td>\n

\n

\n 73.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.9 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n New Orleans, LA<\/span>\n <\/p>\n<\/td>\n

\n

\n 80.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n 79.2%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.4 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n New York, NY<\/span>\n <\/p>\n<\/td>\n

\n

\n 33.9%<\/span>\n <\/p>\n<\/td>\n

\n

\n 32.0%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.9 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Oklahoma City, OK<\/span>\n <\/p>\n<\/td>\n

\n

\n 88.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n 87.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n -0.9 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Orlando, FL<\/span>\n <\/p>\n<\/td>\n

\n

\n 83.0%<\/span>\n <\/p>\n<\/td>\n

\n

\n 81.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.3 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Philadelphia, PA<\/span>\n <\/p>\n<\/td>\n

\n

\n 82.0%<\/span>\n <\/p>\n<\/td>\n

\n

\n 80.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.5 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Phoenix, AZ<\/span>\n <\/p>\n<\/td>\n

\n

\n 70.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n 68.9%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.8 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Pittsburgh, PA<\/span>\n <\/p>\n<\/td>\n

\n

\n 89.1%<\/span>\n <\/p>\n<\/td>\n

\n

\n 88.4%<\/span>\n <\/p>\n<\/td>\n

\n

\n -0.7 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Portland, OR<\/span>\n <\/p>\n<\/td>\n

\n

\n 58.5%<\/span>\n <\/p>\n<\/td>\n

\n

\n 55.3%<\/span>\n <\/p>\n<\/td>\n

\n

\n -3.2 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Providence, RI<\/span>\n <\/p>\n<\/td>\n

\n

\n 77.4%<\/span>\n <\/p>\n<\/td>\n

\n

\n 76.0%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.4 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Raleigh, NC<\/span>\n <\/p>\n<\/td>\n

\n

\n 81.8%<\/span>\n <\/p>\n<\/td>\n

\n

\n 80.2%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.7 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Richmond, VA<\/span>\n <\/p>\n<\/td>\n

\n

\n 82.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n 80.9%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.8 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Riverside, CA<\/span>\n <\/p>\n<\/td>\n

\n

\n 60.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n 57.3%<\/span>\n <\/p>\n<\/td>\n

\n

\n -3.4 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Sacramento, CA<\/span>\n <\/p>\n<\/td>\n

\n

\n 50.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n 47.0%<\/span>\n <\/p>\n<\/td>\n

\n

\n -3.7 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Salt Lake City, UT<\/span>\n <\/p>\n<\/td>\n

\n

\n 56.8%<\/span>\n <\/p>\n<\/td>\n

\n

\n 54.4%<\/span>\n <\/p>\n<\/td>\n

\n

\n -2.4 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n San Antonio, TX<\/span>\n <\/p>\n<\/td>\n

\n

\n 86.5%<\/span>\n <\/p>\n<\/td>\n

\n

\n 85.1%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.4 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n San Diego, CA<\/span>\n <\/p>\n<\/td>\n

\n

\n 23.1%<\/span>\n <\/p>\n<\/td>\n

\n

\n 20.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n -2.6 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n San Francisco, CA<\/span>\n <\/p>\n<\/td>\n

\n

\n 4.8%<\/span>\n <\/p>\n<\/td>\n

\n

\n 3.8%<\/span>\n <\/p>\n<\/td>\n

\n

\n -0.9 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n San Jose, CA<\/span>\n <\/p>\n<\/td>\n

\n

\n 4.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n 3.9%<\/span>\n <\/p>\n<\/td>\n

\n

\n -0.7 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Seattle, WA<\/span>\n <\/p>\n<\/td>\n

\n

\n 30.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n 28.0%<\/span>\n <\/p>\n<\/td>\n

\n

\n -2.7 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n St. Louis, MO<\/span>\n <\/p>\n<\/td>\n

\n

\n 89.6%<\/span>\n <\/p>\n<\/td>\n

\n

\n 88.8%<\/span>\n <\/p>\n<\/td>\n

\n

\n -0.7 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Tampa, FL<\/span>\n <\/p>\n<\/td>\n

\n

\n 81.4%<\/span>\n <\/p>\n<\/td>\n

\n

\n 80.2%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.1 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Virginia Beach, VA<\/span>\n <\/p>\n<\/td>\n

\n

\n 89.3%<\/span>\n <\/p>\n<\/td>\n

\n

\n 88.2%<\/span>\n <\/p>\n<\/td>\n

\n

\n -1.1 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Washington, DC<\/span>\n <\/p>\n<\/td>\n

\n

\n 58.7%<\/span>\n <\/p>\n<\/td>\n

\n

\n 55.8%<\/span>\n <\/p>\n<\/td>\n

\n

\n -2.9 pts<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n National<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 70.1%<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 68.4%<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n -1.7 pts<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\u00a0<\/p>\n

To read the full report, including methodology and an interactive chart that shows how much a homebuyer can afford to spend at different mortgage interest rates, please visit: https:\/\/www.redfin.com\/news\/rising-mortgage-rates-decrease-purchasing-power<\/a><\/u><\/p>\n

\n About Redfin
<\/b>Redfin (www.redfin.com<\/a><\/u>) is a technology-powered residential real estate company, redefining real estate in the consumer’s favor in a commission-driven industry. We do this by integrating every step of the home buying and selling process and pairing our own agents with our own technology, creating a service that is faster, better and costs less. We offer brokerage, iBuying, mortgage, and title services, and we also run the country’s #1 nationwide brokerage website, offering a host of online tools to consumers, including the Redfin Estimate<\/a><\/u>. We represent people buying and selling homes in over 95 markets in the United States<\/span> and Canada<\/span>. Since our launch in 2006, we have saved our customers nearly $1 billion<\/span> and we’ve helped them buy or sell more than 310,000 homes worth more than $152 billion<\/span>.<\/p>\n

For more information or to contact a local Redfin real estate agent, visit www.redfin.com<\/a><\/u>. To learn about housing market trends and download data, visit the Redfin Data Center<\/a><\/u>. To be added to Redfin’s press release distribution list, email press@redfin.com<\/a><\/u>. To view Redfin’s press center, click here<\/a><\/u>.<\/p>\n

<\/div>\n

\n \"Cision\" View original content to download multimedia:http:\/\/www.prnewswire.com\/news-releases\/homebuyers-on-a-2-500-monthly-budget-stand-to-lose-23-250-in-spending-power-as-mortgage-rates-rise-from-record-lows-301241860.html<\/a><\/p>\n

SOURCE Redfin<\/p>\n<\/p><\/div>\n

\"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

Higher mortgage rates would likely make homebuyers more cost conscious and less likely to bid up home prices PR Newswire SEATTLE, March 8, 2021 \/PRNewswire\/ —\u00a0(NASDAQ: RDFN) \u2014 A homebuyer would lose $23,250 in spending power with a mortgage rate of 3.25% versus a 2.75% rate, where they were sitting earlier this year, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. At a 3.25% interest rate, a homebuyer can afford a $506,000 home for $2,500 per month, down from the $529,250 they could afford on the same budget with a 2.75% rate. To put it another way, the monthly payment on a $506,000 home would rise $110 with the higher mortgage rate, from $2,390 to … <\/p>\n

Continue reading “Homebuyers on a $2,500 Monthly Budget Stand to Lose $23,250 in Spending Power as Mortgage Rates Rise from Record Lows”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-452522","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"\nHomebuyers on a $2,500 Monthly Budget Stand to Lose $23,250 in Spending Power as Mortgage Rates Rise from Record Lows - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Homebuyers on a $2,500 Monthly Budget Stand to Lose $23,250 in Spending Power as Mortgage Rates Rise from Record Lows - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"Higher mortgage rates would likely make homebuyers more cost conscious and less likely to bid up home prices PR Newswire SEATTLE, March 8, 2021 \/PRNewswire\/ —\u00a0(NASDAQ: RDFN) \u2014 A homebuyer would lose $23,250 in spending power with a mortgage rate of 3.25% versus a 2.75% rate, where they were sitting earlier this year, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. At a 3.25% interest rate, a homebuyer can afford a $506,000 home for $2,500 per month, down from the $529,250 they could afford on the same budget with a 2.75% rate. To put it another way, the monthly payment on a $506,000 home would rise $110 with the higher mortgage rate, from $2,390 to … Continue reading "Homebuyers on a $2,500 Monthly Budget Stand to Lose $23,250 in Spending Power as Mortgage Rates Rise from Record Lows"\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.marketnewsdesk.com\/index.php\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\/\" \/>\n<meta property=\"og:site_name\" content=\"Market Newsdesk\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-08T13:03:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/mma.prnewswire.com\/media\/624025\/Redfin_Logo.jpg\" \/>\n<meta name=\"author\" content=\"Newsdesk\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Newsdesk\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\\\/\"},\"author\":{\"name\":\"Newsdesk\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/#\\\/schema\\\/person\\\/482f27a394d4fda80ecb5499e519d979\"},\"headline\":\"Homebuyers on a $2,500 Monthly Budget Stand to Lose $23,250 in Spending Power as Mortgage Rates Rise from Record Lows\",\"datePublished\":\"2021-03-08T13:03:37+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\\\/\"},\"wordCount\":1199,\"image\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/mma.prnewswire.com\\\/media\\\/624025\\\/Redfin_Logo.jpg\",\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\\\/\",\"url\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\\\/\",\"name\":\"Homebuyers on a $2,500 Monthly Budget Stand to Lose $23,250 in Spending Power as Mortgage Rates Rise from Record Lows - Market Newsdesk\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/mma.prnewswire.com\\\/media\\\/624025\\\/Redfin_Logo.jpg\",\"datePublished\":\"2021-03-08T13:03:37+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/#\\\/schema\\\/person\\\/482f27a394d4fda80ecb5499e519d979\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\\\/#primaryimage\",\"url\":\"https:\\\/\\\/mma.prnewswire.com\\\/media\\\/624025\\\/Redfin_Logo.jpg\",\"contentUrl\":\"https:\\\/\\\/mma.prnewswire.com\\\/media\\\/624025\\\/Redfin_Logo.jpg\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Homebuyers on a $2,500 Monthly Budget Stand to Lose $23,250 in Spending Power as Mortgage Rates Rise from Record Lows\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/#website\",\"url\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/\",\"name\":\"Market Newsdesk\",\"description\":\"Latest Business News in Real Time\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/#\\\/schema\\\/person\\\/482f27a394d4fda80ecb5499e519d979\",\"name\":\"Newsdesk\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/a0d0bd5b0f0ca12a265a459b13169dac35f33776d8501eda5e68844a366f2f46?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/a0d0bd5b0f0ca12a265a459b13169dac35f33776d8501eda5e68844a366f2f46?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/a0d0bd5b0f0ca12a265a459b13169dac35f33776d8501eda5e68844a366f2f46?s=96&d=mm&r=g\",\"caption\":\"Newsdesk\"},\"url\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/author\\\/newsdesk\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Homebuyers on a $2,500 Monthly Budget Stand to Lose $23,250 in Spending Power as Mortgage Rates Rise from Record Lows - Market Newsdesk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.marketnewsdesk.com\/index.php\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\/","og_locale":"en_US","og_type":"article","og_title":"Homebuyers on a $2,500 Monthly Budget Stand to Lose $23,250 in Spending Power as Mortgage Rates Rise from Record Lows - Market Newsdesk","og_description":"Higher mortgage rates would likely make homebuyers more cost conscious and less likely to bid up home prices PR Newswire SEATTLE, March 8, 2021 \/PRNewswire\/ —\u00a0(NASDAQ: RDFN) \u2014 A homebuyer would lose $23,250 in spending power with a mortgage rate of 3.25% versus a 2.75% rate, where they were sitting earlier this year, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. At a 3.25% interest rate, a homebuyer can afford a $506,000 home for $2,500 per month, down from the $529,250 they could afford on the same budget with a 2.75% rate. To put it another way, the monthly payment on a $506,000 home would rise $110 with the higher mortgage rate, from $2,390 to … Continue reading \"Homebuyers on a $2,500 Monthly Budget Stand to Lose $23,250 in Spending Power as Mortgage Rates Rise from Record Lows\"","og_url":"https:\/\/www.marketnewsdesk.com\/index.php\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\/","og_site_name":"Market Newsdesk","article_published_time":"2021-03-08T13:03:37+00:00","og_image":[{"url":"https:\/\/mma.prnewswire.com\/media\/624025\/Redfin_Logo.jpg","type":"","width":"","height":""}],"author":"Newsdesk","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Newsdesk","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\/#article","isPartOf":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\/"},"author":{"name":"Newsdesk","@id":"https:\/\/www.marketnewsdesk.com\/#\/schema\/person\/482f27a394d4fda80ecb5499e519d979"},"headline":"Homebuyers on a $2,500 Monthly Budget Stand to Lose $23,250 in Spending Power as Mortgage Rates Rise from Record Lows","datePublished":"2021-03-08T13:03:37+00:00","mainEntityOfPage":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\/"},"wordCount":1199,"image":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\/#primaryimage"},"thumbnailUrl":"https:\/\/mma.prnewswire.com\/media\/624025\/Redfin_Logo.jpg","inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\/","url":"https:\/\/www.marketnewsdesk.com\/index.php\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\/","name":"Homebuyers on a $2,500 Monthly Budget Stand to Lose $23,250 in Spending Power as Mortgage Rates Rise from Record Lows - Market Newsdesk","isPartOf":{"@id":"https:\/\/www.marketnewsdesk.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\/#primaryimage"},"image":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\/#primaryimage"},"thumbnailUrl":"https:\/\/mma.prnewswire.com\/media\/624025\/Redfin_Logo.jpg","datePublished":"2021-03-08T13:03:37+00:00","author":{"@id":"https:\/\/www.marketnewsdesk.com\/#\/schema\/person\/482f27a394d4fda80ecb5499e519d979"},"breadcrumb":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.marketnewsdesk.com\/index.php\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\/#primaryimage","url":"https:\/\/mma.prnewswire.com\/media\/624025\/Redfin_Logo.jpg","contentUrl":"https:\/\/mma.prnewswire.com\/media\/624025\/Redfin_Logo.jpg"},{"@type":"BreadcrumbList","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/homebuyers-on-a-2500-monthly-budget-stand-to-lose-23250-in-spending-power-as-mortgage-rates-rise-from-record-lows\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.marketnewsdesk.com\/"},{"@type":"ListItem","position":2,"name":"Homebuyers on a $2,500 Monthly Budget Stand to Lose $23,250 in Spending Power as Mortgage Rates Rise from Record Lows"}]},{"@type":"WebSite","@id":"https:\/\/www.marketnewsdesk.com\/#website","url":"https:\/\/www.marketnewsdesk.com\/","name":"Market Newsdesk","description":"Latest Business News in Real Time","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.marketnewsdesk.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.marketnewsdesk.com\/#\/schema\/person\/482f27a394d4fda80ecb5499e519d979","name":"Newsdesk","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/a0d0bd5b0f0ca12a265a459b13169dac35f33776d8501eda5e68844a366f2f46?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/a0d0bd5b0f0ca12a265a459b13169dac35f33776d8501eda5e68844a366f2f46?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/a0d0bd5b0f0ca12a265a459b13169dac35f33776d8501eda5e68844a366f2f46?s=96&d=mm&r=g","caption":"Newsdesk"},"url":"https:\/\/www.marketnewsdesk.com\/index.php\/author\/newsdesk\/"}]}},"_links":{"self":[{"href":"https:\/\/www.marketnewsdesk.com\/index.php\/wp-json\/wp\/v2\/posts\/452522","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.marketnewsdesk.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.marketnewsdesk.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.marketnewsdesk.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.marketnewsdesk.com\/index.php\/wp-json\/wp\/v2\/comments?post=452522"}],"version-history":[{"count":0,"href":"https:\/\/www.marketnewsdesk.com\/index.php\/wp-json\/wp\/v2\/posts\/452522\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.marketnewsdesk.com\/index.php\/wp-json\/wp\/v2\/media?parent=452522"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.marketnewsdesk.com\/index.php\/wp-json\/wp\/v2\/categories?post=452522"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.marketnewsdesk.com\/index.php\/wp-json\/wp\/v2\/tags?post=452522"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}