After plateauing in recent weeks, mortgage rates reversed course and reached a new high last seen seven years ago, according to Freddie Mac. The 30-year fixed-mortgage rate hit 4.61 percent, which matches the highest level since May 19, 2011. By contrast, the 30-year rate averaged 4.03 percent in 2017.
Click to see the advantages and disadvantages of a fixed-rate mortgage.
The months of June and July are hot for online house hunting and sales. But a higher mortgage rate means a buyer will spend more money for their house in the long run, and that’s enough to spook potential buyers.
The mortgage rate jump from 4.03 percent to 4.61 percent might seem insignificant, but over time, any percentage variance ends up costing — or saving — you a lot of money.
GOBankingRates crunched the numbers to illustrate the relationship between a mortgage rate and your wallet. Assuming no homeowner association fees, here are the current, previous year and five-year price differences on a 30-year fixed mortgage based on:
- 20 percent down payment
- U.S. median home value of $213,146, according to Zillow
- Home insurance national average of $3,798
- Single-family homeowner property tax national average of $3,296
|30-Year Fixed-Mortgage Breakdown|
|May 18, 2013||May 18, 2017||May 18, 2018|
|Monthly mortgage payment||$1,358||$1,407||$1,466|
|Paid in interest||$105,477||$123,258||$144,540|
Bottom line: If you can avoid it, now is not the time to refinance your mortgage.
Click to keep reading about how to get the best mortgage rate.