{"id":73829,"date":"2022-02-09T05:00:07","date_gmt":"2022-02-09T13:00:07","guid":{"rendered":"https:\/\/www.redfin.com\/news\/?p=73829"},"modified":"2022-02-08T12:29:17","modified_gmt":"2022-02-08T20:29:17","slug":"mortgage-rates-purchasing-power-2022","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/mortgage-rates-purchasing-power-2022\/","title":{"rendered":"Homebuyers on a $2,000 Monthly Budget Stand to Lose $13,750 in Spending Power as Mortgage Rates Rise"},"content":{"rendered":"<ul>\n<li><i>Redfin economists predict mortgage rates will hit 3.9% by the end of the year. At that level, homebuyers could afford a $382,250 home on $2,000 per month, down from $396,000 at today\u2019s mortgage rate.<\/i><\/li>\n<li><i><a href=\"https:\/\/www.redfin.com\/city\/30818\/TX\/Austin\">Austin<\/a>, <a href=\"https:\/\/www.redfin.com\/city\/30756\/GA\/Atlanta\">Atlanta<\/a> and <a href=\"https:\/\/www.redfin.com\/city\/14240\/AZ\/Phoenix\">Phoenix<\/a>\u2014all popular migration destinations\u2014would see among the biggest drops in the share of homes affordable on a $2,000 monthly budget if rates were to reach 3.9%.<\/i><\/li>\n<li><i>In <a href=\"https:\/\/www.redfin.com\/city\/5665\/MI\/Detroit\">Detroit<\/a>, roughly 90% of homes for sale are affordable on a $2,000 budget at either mortgage rate\u2014a larger share than any other metro. <a href=\"https:\/\/www.redfin.com\/city\/17420\/CA\/San-Jose\">San Jose<\/a> has the lowest share, at less than 1%.<\/i><\/li>\n<\/ul>\n<p>If mortgage interest rates were to rise to 3.9%, a homebuyer with a $2,000 monthly housing budget could afford a $382,250 home. That&#8217;s down from the $396,000 home a buyer with the same budget can afford with a 3.5% rate\u2014roughly where mortgage rates stand today. Put another way, the monthly payment on a $382,250 home would rise $69 with the higher mortgage rate, to $2,000 from $1,931.<\/p>\n<p>Redfin economists <a href=\"https:\/\/www.redfin.com\/news\/housing-market-update-2022-forecast\/\" target=\"_blank\" rel=\"noopener\">predict<\/a> the 30-year fixed mortgage rate will climb to 3.9% by the end of this year. Mortgage rates are expected to increase as the Federal Reserve <a href=\"https:\/\/apnews.com\/article\/federal-reserve-interest-rates-inflation-1dd9283e46162b3c0d29a2c55a2934d1\" target=\"_blank\" rel=\"noopener\">raises<\/a> interest rates in an effort to alleviate inflation. The Fed has indicated that the series of interest-rate hikes will start in March.<\/p>\n<p>Interest rates started to rise at the end of last year after sinking to a record low of 2.65% in January 2021. The average 30-year fixed mortgage rate reached 3.55% during the week ending <a href=\"http:\/\/www.freddiemac.com\/pmms\/\" target=\"_blank\" rel=\"noopener\">Feb. 3<\/a>, 2022, up from 3.11% about a month earlier. Last month marked the first time rates surpassed 3.5% since March 2020, when the coronavirus pandemic was just beginning. Buyers are simultaneously grappling with surging housing prices; the median home sale price <a href=\"https:\/\/www.redfin.com\/news\/housing-market-update-2022-forecast\/\" target=\"_blank\" rel=\"noopener\">jumped<\/a> 14% year over year in January to $354,750.<\/p>\n<p>The rise in mortgage rates so far hasn\u2019t put a damper on intense homebuyer demand. If anything, it has kept demand strong\u2014pending home sales were up <a href=\"https:\/\/www.redfin.com\/news\/housing-market-update-2022-forecast\/\" target=\"_blank\" rel=\"noopener\">38%<\/a> in January from the same period two years earlier. A December Redfin <a href=\"https:\/\/www.redfin.com\/news\/higher-mortgage-rates-spur-homebuyer-urgency\/\" target=\"_blank\" rel=\"noopener\">survey<\/a> found that nearly half (47%) of house hunters would feel <i>more<\/i> urgency to buy a home if mortgage rates were to rise above 3.5%, which has now happened.<\/p>\n<p>\u201cIf rates were to rise much further in a typical market, we would expect there to be a turning point: Buyers would go from feeling more urgency to buy to feeling less urgency. That\u2019s because rates would ultimately reach a point where renting is more feasible than buying,\u201d said Redfin Chief Economist <a href=\"https:\/\/www.redfin.com\/news\/author\/darylfairweather\/\" target=\"_blank\" rel=\"noopener\">Daryl Fairweather<\/a>. \u201cBut this isn\u2019t a typical market. Rental prices are <a href=\"https:\/\/www.redfin.com\/news\/redfin-rental-report-december-2021\/\" target=\"_blank\" rel=\"noopener\">soaring<\/a> too, so instead of renting, many buyers will likely purchase more modest homes in relatively affordable places to avoid increasing their monthly budget. That means buyer demand will remain strong for at least the next month and potentially longer, even as rates and prices continue to climb.\u201d<\/p>\n<p><a href=\"https:\/\/www.redfin.com\/city\/2287\/ID\/Boise\">Boise, ID<\/a> Redfin agent <a href=\"https:\/\/www.redfin.com\/real-estate-agents\/kristin-lopez\" target=\"_blank\" rel=\"noopener\">Kristin Lopez<\/a> also sees rising rates driving buyers to more modest homes.<\/p>\n<p>\u201cWith home prices and mortgage rates increasing, we might start to see buyers trading space for smaller homes that are closer to amenities,\u201d Lopez said. \u201cSo instead of purchasing large homes in the suburbs, many buyers may \u2018settle\u2019 for a smaller home or even a townhome closer to the city and then buy a bigger house later if they need more room.\u201d<\/p>\n<h3>How Much Home Can You Afford?<\/h3>\n<p>The first <a href=\"https:\/\/datawrapper.dwcdn.net\/FEIwf\/6\/\" target=\"_blank\" rel=\"noopener\">interactive chart<\/a> below shows how much you could afford to spend on a home at different <a href=\"https:\/\/redfin.com\/mortgage-calculator\" target=\"_blank\" rel=\"noopener\">mortgage interest rates<\/a>, with each line representing a different fixed monthly payment. You can <a href=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2020\/03\/mortgage-rates-vs-home-price_Redfin-2020.jpg\" target=\"_blank\" rel=\"noopener\">view or download a static version of this chart here<\/a>. The second <a href=\"https:\/\/datawrapper.dwcdn.net\/oMOPR\/1\/\" target=\"_blank\" rel=\"noopener\">chart<\/a> shows how much your total monthly payment would be at different <a href=\"https:\/\/redfin.com\/mortgage-calculator\" target=\"_blank\" rel=\"noopener\">mortgage interest rates<\/a>, with each line representing a different fixed home price.<\/p>\n<p><iframe id=\"datawrapper-chart-FEIwf\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"How much home can you buy on a variety of fixed monthly payments as mortgage rates change?\" src=\"https:\/\/datawrapper.dwcdn.net\/FEIwf\/6\/\" height=\"600\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Interactive line chart\"><\/iframe><\/p>\n<hr \/>\n<p><iframe id=\"datawrapper-chart-oMOPR\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"How do monthly payments change as mortgage rates change?\" src=\"https:\/\/datawrapper.dwcdn.net\/oMOPR\/1\/\" height=\"600\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Interactive line chart\"><\/iframe><\/p>\n<hr \/>\n<h3>Raleigh, Austin and Atlanta See Biggest Drop in Share of Homes Affordable as Mortgage Rates Rise<\/h3>\n<p>At a 3.9% interest rate, half (50.1%) of homes for sale nationwide in January were affordable for homebuyers on a $2,000 monthly budget, down from 52.2% at a 3.5% interest rate. Popular <a href=\"https:\/\/www.redfin.com\/news\/q4-2021-housing-migration-trends\/\" target=\"_blank\" rel=\"noopener\">migration destinations<\/a>, including <a href=\"https:\/\/www.redfin.com\/city\/30818\/TX\/Austin\">Austin, TX<\/a>, <a href=\"https:\/\/www.redfin.com\/city\/30756\/GA\/Atlanta\">Atlanta<\/a> and <a href=\"https:\/\/www.redfin.com\/city\/14240\/AZ\/Phoenix\">Phoenix<\/a>, saw outsized declines.<\/p>\n<p>In <a href=\"https:\/\/www.redfin.com\/city\/35711\/NC\/Raleigh\">Raleigh<\/a>, 46.3% of homes for sale last month were affordable with that budget at a 3.9% interest rate, down from 50.1% at a 3.5% interest rate. That 3.8-percentage point decline was the biggest drop among the 50 most populous U.S. metropolitan areas. Next came <a href=\"https:\/\/www.redfin.com\/city\/30818\/TX\/Austin\">Austin<\/a> (-3.5 pts), <a href=\"https:\/\/www.redfin.com\/city\/30756\/GA\/Atlanta\">Atlanta<\/a> (-3.2 pts), <a href=\"https:\/\/www.redfin.com\/city\/14240\/AZ\/Phoenix\">Phoenix<\/a> (-3.1 pts) and <a href=\"https:\/\/www.redfin.com\/city\/8903\/TX\/Houston\">Houston<\/a> (-3.1 pts).<\/p>\n<p>Many of these metros have <a href=\"https:\/\/www.redfin.com\/news\/real-estate-home-value-surge-december-2021\/\" target=\"_blank\" rel=\"noopener\">exploded<\/a> in popularity during the pandemic as homebuyers with big budgets have moved in from expensive coastal cities to work remotely and get more bang for their buck. That has contributed to a <a href=\"https:\/\/www.redfin.com\/news\/homebuyer-migration-2021-rising-home-prices\" target=\"_blank\" rel=\"noopener\">surge<\/a> in housing prices across the Sun Belt.<\/p>\n<h3>Detroit, Cleveland and Buffalo Have the Largest Share of Homes Affordable at Either Mortgage Rate<\/h3>\n<p>At a 3.9% interest rate, 89.4% of homes for sale in <a href=\"https:\/\/www.redfin.com\/city\/5665\/MI\/Detroit\">Detroit<\/a> last month were affordable on a $2,000 monthly budget\u2014the highest share among the 50 most populous metros. It was followed by <a href=\"https:\/\/www.redfin.com\/city\/4145\/OH\/Cleveland\">Cleveland<\/a> (85.4%), <a href=\"https:\/\/www.redfin.com\/city\/2832\/NY\/Buffalo\">Buffalo, NY<\/a> (83.4%), <a href=\"https:\/\/www.redfin.com\/city\/15702\/PA\/Pittsburgh\">Pittsburgh<\/a> (81.3%) and <a href=\"https:\/\/www.redfin.com\/city\/16661\/MO\/St-Louis\">St. Louis<\/a> (80.4%). Those same five places also had the highest share of homes affordable at a 3.5% interest rate.<\/p>\n<p>In <a href=\"https:\/\/www.redfin.com\/city\/17420\/CA\/San-Jose\">San Jose<\/a>, just 0.2% of homes were affordable with that budget at a 3.9% interest rate\u2014the lowest share among the top 50 metros. Next came <a href=\"https:\/\/www.redfin.com\/city\/17151\/CA\/San-Francisco\">San Francisco<\/a> (1.6%), <a href=\"https:\/\/www.redfin.com\/city\/11203\/CA\/Los-Angeles\">Los Angeles<\/a> (3.8%), <a href=\"https:\/\/www.redfin.com\/city\/16904\/CA\/San-Diego\">San Diego<\/a> (4.3%) and <a href=\"https:\/\/www.redfin.com\/city\/16163\/WA\/Seattle\">Seattle<\/a> (9%).<\/p>\n<h3>Metro-Level Summary<\/h3>\n<p><i>Share of homes for sale affordable on a $2,000 monthly mortgage budget: 3.9% interest rate versus 3.5% interest rate<\/i><br \/>\n\n<table id=\"tablepress-311\" class=\"tablepress tablepress-id-311\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\"><b>Metro Area<\/b><\/th><th class=\"column-2\"><b>Total Homes for sale, Jan. 1 - 31<\/b><\/th><th class=\"column-3\"><b>Share of Homes Affordable on a $2,000 Payment @ 3.50%<\/b><\/th><th class=\"column-4\"><b>Share of Homes Affordable on a $2,000 Payment @ 3.90%<\/b><\/th><th class=\"column-5\"><b>Change in Share of Homes Affordable, 3.50% vs 3.90%<\/b><\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/30756\/GA\/Atlanta\">Atlanta, GA<\/a><\/td><td class=\"column-2\">15,975<\/td><td class=\"column-3\">55.6%<\/td><td class=\"column-4\">52.4%<\/td><td class=\"column-5\">-3.2 pts<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/30818\/TX\/Austin\">Austin, TX<\/a><\/td><td class=\"column-2\">5,589<\/td><td class=\"column-3\">24.5%<\/td><td class=\"column-4\">21.0%<\/td><td class=\"column-5\">-3.5 pts<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/1073\/MD\/Baltimore\">Baltimore, MD<\/a><\/td><td class=\"column-2\">6,948<\/td><td class=\"column-3\">67.3%<\/td><td class=\"column-4\">65.0%<\/td><td class=\"column-5\">-2.2 pts<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/1823\/AL\/Birmingham\">Birmingham, AL<\/a><\/td><td class=\"column-2\">3,381<\/td><td class=\"column-3\">76.2%<\/td><td class=\"column-4\">74.5%<\/td><td class=\"column-5\">-1.7 pts<\/td>\n<\/tr>\n<tr class=\"row-6\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/1826\/MA\/Boston\">Boston, MA<\/a><\/td><td class=\"column-2\">5,271<\/td><td class=\"column-3\">14.1%<\/td><td class=\"column-4\">12.8%<\/td><td class=\"column-5\">-1.3 pts<\/td>\n<\/tr>\n<tr class=\"row-7\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/2832\/NY\/Buffalo\">Buffalo, NY<\/a><\/td><td class=\"column-2\">1,419<\/td><td class=\"column-3\">84.6%<\/td><td class=\"column-4\">83.4%<\/td><td class=\"column-5\">-1.3 pts<\/td>\n<\/tr>\n<tr class=\"row-8\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/3105\/NC\/Charlotte\">Charlotte, NC<\/a><\/td><td class=\"column-2\">7,702<\/td><td class=\"column-3\">54.9%<\/td><td class=\"column-4\">52.2%<\/td><td class=\"column-5\">-2.8 pts<\/td>\n<\/tr>\n<tr class=\"row-9\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/29470\/IL\/Chicago\">Chicago, IL<\/a><\/td><td class=\"column-2\">17,855<\/td><td class=\"column-3\">66.4%<\/td><td class=\"column-4\">64.7%<\/td><td class=\"column-5\">-1.7 pts<\/td>\n<\/tr>\n<tr class=\"row-10\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/3879\/OH\/Cincinnati\">Cincinnati, OH<\/a><\/td><td class=\"column-2\">6,013<\/td><td class=\"column-3\">76.1%<\/td><td class=\"column-4\">74.8%<\/td><td class=\"column-5\">-1.3 pts<\/td>\n<\/tr>\n<tr class=\"row-11\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/4145\/OH\/Cleveland\">Cleveland, OH<\/a><\/td><td class=\"column-2\">5,651<\/td><td class=\"column-3\">86.1%<\/td><td class=\"column-4\">85.4%<\/td><td class=\"column-5\">-0.7 pts<\/td>\n<\/tr>\n<tr class=\"row-12\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/4664\/OH\/Columbus\">Columbus, OH<\/a><\/td><td class=\"column-2\">4,941<\/td><td class=\"column-3\">71.9%<\/td><td class=\"column-4\">69.8%<\/td><td class=\"column-5\">-2.1 pts<\/td>\n<\/tr>\n<tr class=\"row-13\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/30794\/TX\/Dallas\">Dallas, TX<\/a><\/td><td class=\"column-2\">9,587<\/td><td class=\"column-3\">48.6%<\/td><td class=\"column-4\">45.9%<\/td><td class=\"column-5\">-2.7 pts<\/td>\n<\/tr>\n<tr class=\"row-14\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/5155\/CO\/Denver\">Denver, CO<\/a><\/td><td class=\"column-2\">4,844<\/td><td class=\"column-3\">18.2%<\/td><td class=\"column-4\">16.5%<\/td><td class=\"column-5\">-1.7 pts<\/td>\n<\/tr>\n<tr class=\"row-15\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/5665\/MI\/Detroit\">Detroit, MI<\/a><\/td><td class=\"column-2\">4,615<\/td><td class=\"column-3\">90.1%<\/td><td class=\"column-4\">89.4%<\/td><td class=\"column-5\">-0.7 pts<\/td>\n<\/tr>\n<tr class=\"row-16\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/9406\/CT\/Hartford\">Hartford, CT<\/a><\/td><td class=\"column-2\">2,814<\/td><td class=\"column-3\">75.3%<\/td><td class=\"column-4\">73.7%<\/td><td class=\"column-5\">-1.6 pts<\/td>\n<\/tr>\n<tr class=\"row-17\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/8903\/TX\/Houston\">Houston, TX<\/a><\/td><td class=\"column-2\">21,490<\/td><td class=\"column-3\">58.4%<\/td><td class=\"column-4\">55.3%<\/td><td class=\"column-5\">-3.1 pts<\/td>\n<\/tr>\n<tr class=\"row-18\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/9170\/IN\/Indianapolis\">Indianapolis, IN<\/a><\/td><td class=\"column-2\">4,644<\/td><td class=\"column-3\">78.0%<\/td><td class=\"column-4\">75.8%<\/td><td class=\"column-5\">-2.2 pts<\/td>\n<\/tr>\n<tr class=\"row-19\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/8907\/FL\/Jacksonville\">Jacksonville, FL<\/a><\/td><td class=\"column-2\">5,356<\/td><td class=\"column-3\">58.4%<\/td><td class=\"column-4\">55.5%<\/td><td class=\"column-5\">-2.9 pts<\/td>\n<\/tr>\n<tr class=\"row-20\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/35751\/MO\/Kansas-City\">Kansas City, MO<\/a><\/td><td class=\"column-2\">4,875<\/td><td class=\"column-3\">64.6%<\/td><td class=\"column-4\">63.0%<\/td><td class=\"column-5\">-1.7 pts<\/td>\n<\/tr>\n<tr class=\"row-21\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/10201\/NV\/Las-Vegas\">Las Vegas, NV<\/a><\/td><td class=\"column-2\">7,522<\/td><td class=\"column-3\">39.0%<\/td><td class=\"column-4\">35.9%<\/td><td class=\"column-5\">-3.0 pts<\/td>\n<\/tr>\n<tr class=\"row-22\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/11203\/CA\/Los-Angeles\">Los Angeles, CA<\/a><\/td><td class=\"column-2\">13,020<\/td><td class=\"column-3\">4.5%<\/td><td class=\"column-4\">3.8%<\/td><td class=\"column-5\">-0.7 pts<\/td>\n<\/tr>\n<tr class=\"row-23\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/12262\/KY\/Louisville\">Louisville, KY<\/a><\/td><td class=\"column-2\">3,092<\/td><td class=\"column-3\">80.9%<\/td><td class=\"column-4\">79.6%<\/td><td class=\"column-5\">-1.4 pts<\/td>\n<\/tr>\n<tr class=\"row-24\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/12260\/TN\/Memphis\">Memphis, TN<\/a><\/td><td class=\"column-2\">2,947<\/td><td class=\"column-3\">78.9%<\/td><td class=\"column-4\">76.8%<\/td><td class=\"column-5\">-2.1 pts<\/td>\n<\/tr>\n<tr class=\"row-25\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/11458\/FL\/Miami\">Miami, FL<\/a><\/td><td class=\"column-2\">12,805<\/td><td class=\"column-3\">33.4%<\/td><td class=\"column-4\">31.7%<\/td><td class=\"column-5\">-1.7 pts<\/td>\n<\/tr>\n<tr class=\"row-26\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/35759\/WI\/Milwaukee\">Milwaukee, WI<\/a><\/td><td class=\"column-2\">4,043<\/td><td class=\"column-3\">77.7%<\/td><td class=\"column-4\">76.6%<\/td><td class=\"column-5\">-1.1 pts<\/td>\n<\/tr>\n<tr class=\"row-27\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/10943\/MN\/Minneapolis\">Minneapolis, MN<\/a><\/td><td class=\"column-2\">6,401<\/td><td class=\"column-3\">55.3%<\/td><td class=\"column-4\">52.6%<\/td><td class=\"column-5\">-2.8 pts<\/td>\n<\/tr>\n<tr class=\"row-28\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/13415\/TN\/Nashville\">Nashville, TN<\/a><\/td><td class=\"column-2\">5,930<\/td><td class=\"column-3\">42.6%<\/td><td class=\"column-4\">39.9%<\/td><td class=\"column-5\">-2.7 pts<\/td>\n<\/tr>\n<tr class=\"row-29\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/14233\/LA\/New-Orleans\">New Orleans, LA<\/a><\/td><td class=\"column-2\">3,229<\/td><td class=\"column-3\">66.1%<\/td><td class=\"column-4\">64.0%<\/td><td class=\"column-5\">-2.2 pts<\/td>\n<\/tr>\n<tr class=\"row-30\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/30749\/NY\/New-York\">New York, NY<\/a><\/td><td class=\"column-2\">29,993<\/td><td class=\"column-3\">21.0%<\/td><td class=\"column-4\">19.9%<\/td><td class=\"column-5\">-1.2 pts<\/td>\n<\/tr>\n<tr class=\"row-31\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/14237\/OK\/Oklahoma-City\">Oklahoma City, OK<\/a><\/td><td class=\"column-2\">3,946<\/td><td class=\"column-3\">74.3%<\/td><td class=\"column-4\">72.0%<\/td><td class=\"column-5\">-2.3 pts<\/td>\n<\/tr>\n<tr class=\"row-32\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/13655\/FL\/Orlando\">Orlando, FL<\/a><\/td><td class=\"column-2\">6,848<\/td><td class=\"column-3\">52.3%<\/td><td class=\"column-4\">49.3%<\/td><td class=\"column-5\">-3.0 pts<\/td>\n<\/tr>\n<tr class=\"row-33\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/15502\/PA\/Philadelphia\">Philadelphia, PA<\/a><\/td><td class=\"column-2\">6,666<\/td><td class=\"column-3\">76.7%<\/td><td class=\"column-4\">75.5%<\/td><td class=\"column-5\">-1.2 pts<\/td>\n<\/tr>\n<tr class=\"row-34\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/14240\/AZ\/Phoenix\">Phoenix, AZ<\/a><\/td><td class=\"column-2\">14,517<\/td><td class=\"column-3\">29.7%<\/td><td class=\"column-4\">26.6%<\/td><td class=\"column-5\">-3.1 pts<\/td>\n<\/tr>\n<tr class=\"row-35\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/15702\/PA\/Pittsburgh\">Pittsburgh, PA<\/a><\/td><td class=\"column-2\">7,324<\/td><td class=\"column-3\">82.3%<\/td><td class=\"column-4\">81.3%<\/td><td class=\"column-5\">-0.9 pts<\/td>\n<\/tr>\n<tr class=\"row-36\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/30772\/OR\/Portland\">Portland, OR<\/a><\/td><td class=\"column-2\">4,511<\/td><td class=\"column-3\">17.2%<\/td><td class=\"column-4\">14.9%<\/td><td class=\"column-5\">-2.4 pts<\/td>\n<\/tr>\n<tr class=\"row-37\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/15272\/RI\/Providence\">Providence, RI<\/a><\/td><td class=\"column-2\">3,126<\/td><td class=\"column-3\">49.4%<\/td><td class=\"column-4\">46.8%<\/td><td class=\"column-5\">-2.6 pts<\/td>\n<\/tr>\n<tr class=\"row-38\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/35711\/NC\/Raleigh\">Raleigh, NC<\/a><\/td><td class=\"column-2\">3,627<\/td><td class=\"column-3\">50.1%<\/td><td class=\"column-4\">46.3%<\/td><td class=\"column-5\">-3.8 pts<\/td>\n<\/tr>\n<tr class=\"row-39\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/17149\/VA\/Richmond\">Richmond, VA<\/a><\/td><td class=\"column-2\">2,421<\/td><td class=\"column-3\">66.6%<\/td><td class=\"column-4\">64.4%<\/td><td class=\"column-5\">-2.2 pts<\/td>\n<\/tr>\n<tr class=\"row-40\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/15935\/CA\/Riverside\">Riverside, CA<\/a><\/td><td class=\"column-2\">11,064<\/td><td class=\"column-3\">22.3%<\/td><td class=\"column-4\">20.0%<\/td><td class=\"column-5\">-2.3 pts<\/td>\n<\/tr>\n<tr class=\"row-41\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/16409\/CA\/Sacramento\">Sacramento, CA<\/a><\/td><td class=\"column-2\">3,460<\/td><td class=\"column-3\">14.2%<\/td><td class=\"column-4\">12.3%<\/td><td class=\"column-5\">-2.0 pts<\/td>\n<\/tr>\n<tr class=\"row-42\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/17150\/UT\/Salt-Lake-City\">Salt Lake City, UT<\/a><\/td><td class=\"column-2\">1,734<\/td><td class=\"column-3\">19.4%<\/td><td class=\"column-4\">17.2%<\/td><td class=\"column-5\">-2.2 pts<\/td>\n<\/tr>\n<tr class=\"row-43\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/16657\/TX\/San-Antonio\">San Antonio, TX<\/a><\/td><td class=\"column-2\">6,495<\/td><td class=\"column-3\">65.1%<\/td><td class=\"column-4\">62.7%<\/td><td class=\"column-5\">-2.4 pts<\/td>\n<\/tr>\n<tr class=\"row-44\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/16904\/CA\/San-Diego\">San Diego, CA<\/a><\/td><td class=\"column-2\">4,043<\/td><td class=\"column-3\">4.9%<\/td><td class=\"column-4\">4.3%<\/td><td class=\"column-5\">-0.6 pts<\/td>\n<\/tr>\n<tr class=\"row-45\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/17151\/CA\/San-Francisco\">San Francisco, CA<\/a><\/td><td class=\"column-2\">1,963<\/td><td class=\"column-3\">2.0%<\/td><td class=\"column-4\">1.6%<\/td><td class=\"column-5\">-0.4 pts<\/td>\n<\/tr>\n<tr class=\"row-46\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/17420\/CA\/San-Jose\">San Jose, CA<\/a><\/td><td class=\"column-2\">1,507<\/td><td class=\"column-3\">0.5%<\/td><td class=\"column-4\">0.2%<\/td><td class=\"column-5\">-0.3 pts<\/td>\n<\/tr>\n<tr class=\"row-47\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/16163\/WA\/Seattle\">Seattle, WA<\/a><\/td><td class=\"column-2\">3,702<\/td><td class=\"column-3\">10.1%<\/td><td class=\"column-4\">9.0%<\/td><td class=\"column-5\">-1.1 pts<\/td>\n<\/tr>\n<tr class=\"row-48\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/16661\/MO\/St-Louis\">St. Louis, MO<\/a><\/td><td class=\"column-2\">6,398<\/td><td class=\"column-3\">81.7%<\/td><td class=\"column-4\">80.4%<\/td><td class=\"column-5\">-1.3 pts<\/td>\n<\/tr>\n<tr class=\"row-49\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/18142\/FL\/Tampa\">Tampa, FL<\/a><\/td><td class=\"column-2\">9,256<\/td><td class=\"column-3\">55.9%<\/td><td class=\"column-4\">53.3%<\/td><td class=\"column-5\">-2.6 pts<\/td>\n<\/tr>\n<tr class=\"row-50\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/20418\/VA\/Virginia-Beach\">Virginia Beach, VA<\/a><\/td><td class=\"column-2\">4,437<\/td><td class=\"column-3\">73.6%<\/td><td class=\"column-4\">71.6%<\/td><td class=\"column-5\">-2.0 pts<\/td>\n<\/tr>\n<tr class=\"row-51\">\n\t<td class=\"column-1\"><a href=\"https:\/\/www.redfin.com\/city\/12839\/DC\/Washington-DC\">Washington, D.C.<\/a><\/td><td class=\"column-2\">10,948<\/td><td class=\"column-3\">34.2%<\/td><td class=\"column-4\">31.7%<\/td><td class=\"column-5\">-2.4 pts<\/td>\n<\/tr>\n<tr class=\"row-52\">\n\t<td class=\"column-1\"><b>National<\/b><\/td><td class=\"column-2\"><b>615,930<\/b><\/td><td class=\"column-3\"><b>52.2%<\/b><\/td><td class=\"column-4\"><b>50.1%<\/b><\/td><td class=\"column-5\"><b>-2.1 pts<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n<hr \/>\n<h3>Methodology<\/h3>\n<p>The home prices listed in the interactive chart and examples above are calculated based on the maximum loan a buyer could pay with the given monthly payments, assuming a 20% down payment plus property taxes (1.25% rate) and insurance (annual premium 0.5% of home value). HOA dues were not included in the calculations. We used mortgage rates of 3.90% and 3.50% for the comparisons included in this report. We used asking prices to determine the share of homes affordable.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Redfin economists predict mortgage rates will hit 3.9% by the end of the year. At that level, homebuyers could afford a $382,250 home on $2,000 per month, down from $396,000 at today\u2019s mortgage rate. Austin, Atlanta and Phoenix\u2014all popular migration destinations\u2014would see among the biggest drops in the share of homes affordable on a $2,000 [&hellip;]<\/p>\n","protected":false},"author":13346,"featured_media":73830,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[27,8],"tags":[9,20],"dashboard":[],"coauthors":[125,62],"class_list":["post-73829","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-affordability","category-housing-market-news","tag-coronavirus","tag-housing-affordability"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Homebuyers Stand to Lose Thousands in Spending Power as Mortgage Rates Rise<\/title>\n<meta name=\"description\" content=\"Homebuyers with a $2,000 monthly budget could afford a $382,250 home if mortgage rates rise to 3.9%, down from the $396,000 they can afford at 3.5%.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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