The average 30 year mortgage rate just hit 7.22%
That rate was about 5% a year ago
Yet the median sale price has only slightly decreased
This housing market is strong pic.twitter.com/jlJvl4DAKZ
— Genevieve Roch-Decter, CFA (@GRDecter) July 6, 2023
With the increase in mortgage rates from 3% to over 7%, a $400k house will now cost you over $1,000,000.
🔥🔥🔥 pic.twitter.com/c0rQJBLUls
— Wall Street Mav (@WallStreetMav) July 6, 2023
Average mortgage payments nearly $1,000 PER MONTH higher than two years ago
“Mortgage rates have reached their highest level this year and are now more than double what they were in 2021, new figures show.
Data from lender Freddie Mac found that the average rate on a 30-year home loan is now hovering at 6.7 percent, up from 2.9 percent two years ago.
It means the standard monthly payment on a $400,000 house has shot up from $1,582 to $2,480, analysis by Dailymail.com found.
In total, the homeowner will therefore pay $892,745 in their 30-year term – $300,000 more than they would have done if they bought in 2021.
The interest they will pay in the long run has also ballooned from $189,403 to $512,745. The analysis assumes the homeowner made a 5 percent down payment of $20,000.”