Mortgage rates are rising again. See how much money they're costing 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 in two months ahead of the pivotal spring home-buying season, throttling demand among would-be buyers.
Mortgage buyer Freddie Mac said Thursday that the average rate on a 30-year loan this week rose to 6.94% from 6.9% – the highest level since mid-December. 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%.
«Mortgage rates continued their ascent this week, reaching a two-month high and flirting with seven percent yet again,» said Sam Khater, Freddie Mac’s chief economist. «The recent boomerang in rates has dampened already tentative homebuyer momentum as we approach the spring, a historically busy season for homebuying.»
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%.
CREDIT CARD DEBT SMASHED ANOTHER RECORD HIGH AT THE END OF 2023
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.
The interest rate-sensitive housing market has cooled rapidly as a result of the Federal Reserve's aggressive tightening campaign. Policymakers lifted the benchmark
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