Mortgages in the U.S. rise to 6.95%, the highest in 19 months
WHAT HAPPENED
The average rate for 30-year fixed mortgages in the U.S. rose to 6.95%, its highest level in 19 months. A year ago it was 6.26%. On a $300,000 loan, that adds almost $136 per month.
WHY IT MATTERS
The Fed raised its rate and higher oil prices keep inflation pressured. This makes borrowing money more expensive. The purchase and construction of homes, credit, and transportation feel it first; refinancing costs also rise.
AND FOR YOUR PORTFOLIO
For a family, a house may cost the same and still require about $1,630 more per year for the loan. Fewer people qualify to buy, which could cool home sales and affect construction companies and related activities.
💬 TELL IT LIKE THIS
“When rates rise, the house does not necessarily become more expensive: the loan to pay for it becomes more expensive.”