Rising Mortgage Rates Already Cost $50 More a Month
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That’s how much more buyers of a typical house may have to pay each month because mortgage rates are no longer at record lows.
At 3.23%, the latest national average the Mortgage Bankers Association has logged for a 30-year fixed mortgage, the monthly payment on an average single-family home would be $1,571, assuming a 20% down payment and including typical property taxes and homeowner’s insurance. All else being equal, the monthly payment on the same home purchased in December, when the average mortgage rate was a record low 2.85%, would have been $1,521.
The above comparison uses the median price of an existing single-family home as of January—$303,900—for both calculations, so it doesn’t account for the additional impact of rising home prices.
Rising mortgage rates are making home purchases a little less affordable, and beginning to throw some cold water on the hot housing market, economists say. On the bright side for buyers, higher rates are likely to put a drag on sale prices that have skyrocketed in the pandemic.