than a year ago.
This is something that I posted last night in this thread:
https://www.democraticunderground.com/10142889877
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Mortgage buyer Freddie Mac reported Thursday that the average rate on the 30-year loan this week jumped to 4.16% from 3.85% last week. That’s a sharp contrast from last year’s record-low mortgage rates of under 3%. A year ago, the 30-year rate stood at 3.09%.
A year ago, it says the average mortgage rate was 3.09%. On a $300,000 home, that's a $1,279/month principal and interest (P&I) payment for a 30 year fixed loan.
Now at 4.16% -- that's a $1,460/month payment.
That's 14.2% increase. A $2,172/year increase.
And that's not all. According to the latest Case-Shiller national home prices report, the average home price increased by 18.8% in the past year.
So on average that $300,000 home became a $356,400 home.
The P&I on a $356,400 home at 4.16% interest is $1,735/month
So in one year, thanks to the combination of higher mortgage rates and higher house prices, we have a 35.6% increase in the P&I payment.
The boost in prices helps the home seller of course (leaving aside that the home seller has to find another place to live, also at an inflated price compared to a year ago, so its not all joy and gravy).
The boost in the mortgage rate helps neither buyer nor seller, just the bank.
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