Homebuyers Lose $33,250 in Purchasing Power as Mortgage Rates Exceed 7 Percent: Report

Mortgage applications have declined by 27 percent amid rising rates.

A home available for sale is shown in Austin, Texas, on Oct. 16, 2023. Photo by Brandon Bell/Getty Images

The purchasing power of prospective homebuyers has eroded because of the recent increase in mortgage rates, with strong economic data also contributing to the problem, according to real estate brokerage firm Redfin.

Homebuyers have lost $33,250 in purchasing power over the past six weeks, according to an Oct. 29 statement by the firm.