How rising interest rates are cutting into what N.J. homebuyers can afford –

The type of home buyers could afford has changed drastically in New Jersey since August because of rising interest rates and continued growth in home prices.

A buyer with a $100,000 income could have qualified to buy a home at about $383,000 with 10 percent down in August. But that figure has dropped to about $312,000 since then, according to data from the Otteau Group. The buying power for people with an income twice that amount has seen their buying power also decrease by about 18%.

“The current level of homes prices is not sustainable,” said Jeffrey Otteau, a real estate economist and president of the Otteau Group. “It’s just a matter of time before home prices start to decline.”