Mortgage rates are rising again. Here's how much the steeper rates will cost you
Real estate agent Mauricio Umansky says high mortgage rates, high prices and low supply are creating difficulties for homebuyers on 'The Claman Countdown.'
Mortgage rates jumped to the highest level this year, throttling demand among would-be buyers and putting more pressure on the already beleaguered housing market.
Mortgage buyer Freddie Mac said Thursday that the average rate on a 30-year loan this week crossed the 7% threshold for the first time this year, jumping from 6.88% to 7.1%. While that is down from a peak of 7.79% in the fall, it remains sharply higher than the pandemic-era lows of just 3%.
«It seems increasingly likely that mortgage rates are not going to come down any time soon,» said Lisa Sturtevant, Bright MLS chief economist. «We are likely to see rates close to 7% throughout the spring, and in the mid- to high-6s into the summer.»
MORTGAGE RATES OVER 7% ARE THROTTLING HOMEBUYER DEMAND
Below, you can calculate how volatile increases and decreases in rates could affect the typical cost of a monthly mortgage.
Even just a minor change in rates can affect how much would-be homebuyers pay each month.
A recent study by LendingTree compared the average monthly payments on 30-year fixed-rate mortgages in April 2022 – when the rate hovered around 3.79% – and one year later, when rates jumped to 5.25%.
WHY CAN'T YOU FIND A HOME FOR SALE?
It found that higher rates cost borrowers hundreds more each month and potentially added as much as $75,000 over the lifetime of the 30-year loan.
In fact, recent findings from Redfin show the combination of steep mortgage rates and elevated home prices has pushed the median monthly housing payment to $2,775 – an 11% increase from the same time last year and the highest level
Read more on foxbusiness.com
