CHARLOTTE, N.C. — With interest rates hovering around the 7.4% range, many would-be homebuyers are vacillating about the opportunity to buy a home. A new Redfin report shows over the last year, people looking for a home have lost more than $70,000 in buying power.
Historically high mortgage rates are hitting buyers where it hurts -- in their budgets. Would-be homeowner Mason Pixley realizes that some of the homes in this market are just not within his budget, and he's not alone.
"The rates are taking a lot of buying power off the table for people like me," Pixley said. "Overall, it puts me in a position for a first-time home that doesn't have everything I want. That's not a good investment for me."
Over a year's time, a homebuyer on a $3,000 monthly mortgage budget lost $71,000 in buying power since August 2022 when rates where around 5.5%.
They could afford a $500,000 home then, but now it's dropped to $429,000. Because of that monthly price point, he's comfortable renting at a cheaper price with more amenities.
"The rates are just too high and that's the reality of where we are right now," Shivam Patel, CEO of Patel Standard Realty told WCNC Charlotte. "We have to help people find out ways to get creative with loan packages so they can attain the home that they want."
Contact Colin Mayfield at cmayfield@wcnc.com or follow him on Facebook, X and Instagram.