Hesitant U.S. Homebuyers Lose 10% in Purchasing Power

(Bloomberg) -- Rising U.S. borrowing costs have had an adverse effect on procrastinating homebuyers. With fixed 30-year mortgage rates up about seven-eighths of a point over the past year, prospective owners have lost roughly 10 percent in purchasing power. They’ve also missed out on home-equity gains, with 17 of the 20 cities tracked by S&P CoreLogic Case-Shiller recording price increases of at least 5 percent in July from a year earlier.

To contact the reporter on this story: Alex Tanzi in Washington at atanzi@bloomberg.net

To contact the editors responsible for this story: Nancy Moran at nmoran@bloomberg.net, Scott Lanman

©2018 Bloomberg L.P.