Mortgage rates are on the rise, marking an end to the record lows seen the past couple of years. That’s causing a perfect storm for buyers when coupled with rising home prices and overall inflation.
The average rate for a 30-year fixed-rate mortgage loan reached 5% for the first time in more than a decade in April and has since increased to 5.3% as of May 12, according to Freddie Mac.
At December’s 3.11% rate with a 20% down payment, the principal and interest for a $350,000 home would have been $1,197 per month before taxes and insurance, according to an estimate from Bankrate.
At 5.3%, a home at the same price would have a monthly payment of $1,554. That’s a difference of $357 in less than five months.
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