Mortgages Hit Three-Year High: How Much More a Typical House Now Costs
Higher interest rates are adding roughly $200 per month to homebuyers’ monthly payments. In some states, it is even more.
Mortgage rates reached a three-year high this week, with the average 30-year fixed-rate mortgage climbing to 7.28 percent, according to the latest Freddie Mac data. This rate increase marks the greatest weekly jump in four years and comes after the 10-year Treasury yield hit its highest level since 2002 due to soaring energy costs, AI spending, and corporate borrowing.
Realtor.com senior economist Hannah Jones noted that the 30-year mortgage rate has risen nearly a full percentage point over the past year, adding more than $200 to the monthly payment for a median-priced home. Buyers are now paying about $213 more per month than they were last year, equivalent to $2,552 more per year. States with the highest home prices, such as California and New York, have faced the largest increases.
Mortgage experts advise buyers to "rate-proof" their budget and consider their credit score, down payment, and lender when planning for a home purchase.
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