See how much purchasing power home buyers have lost in the past month

Mortgage rates moved higher this week as the market’s reaction to the war with Iran quickly eroded the purchasing power of homebuyers heading into peak real estate season.

Mortgage interest rates fell last month to the lowest point in more than three years. That was before the US and Israel launched a military campaign in Iran, causing gas prices to skyrocket.

But as the military campaign unfolded, interest rates followed suit, rising from a low of 5.99 percent in late February to 6.62 percent on Friday afternoon, according to Mortgage News Daily.

As a result, a buyer trying to purchase a median-priced home with a 20 percent down payment would have lost more than $21,000 in purchasing power without increasing their monthly payment.

Use the tool below to see how much purchasing power the ongoing interest rate spike has eroded.

Also check out the chart below to better understand how mortgage rates have evolved this year amid political and geopolitical uncertainty.

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