Mortgage Rates are Certainly Climbing

Mortgage rates are certainly climbing up this week, due in part to the Feds easing up on buying mortgage-backed securities, the inflationary jitters that could drive a recession, and, of course, the pandemic. We are entering some very volatile times, however, when we widen our scope, rates are still at 50-year lows.

Last week's average 30-year fixed rate was at 3.25%, recently was at 3.75%.

To put this in perspective: on a $300,000 mortgage, last week's rate would have put the payment at $1305 for principal and interest, this week is $1389 a month, that's an $84 a month increase. This means anyone shopping for a new home now will afford $18,000 less than they could the week before. Also, in this same scenario, this purchase or a refinance of this loan size would accrue upwards of $30,141 more interest over the life of the loan.

If you have any questions on the market or want me to run some reality checks on any scenario, please let me know.