MORTGAGE INTEREST RATES JUMP AGAIN
Once again, mortgage interest rates jumped sharply last week. In the past six weeks, mortgage interest rates have increased nearly one full percentage point from an average of 4.7% to nearly 5.1%. Please see the chart below. As discussed early this month, buyers should seriously consider this continued increase in interest rates. As rates continue to rise, the overall cost of home ownership will be increased significantly.
MORTGAGE RATE COMPARISON CHART 30 YEAR FIXED
| Loan Amount | $100,000 | $200,000 | $300,000 | $400,000 | $500,000 |
|
Rate 4.1% |
$483 | $966 | $1450 | $1933 | $2416 |
|
5.1% |
$543 | $1086 | $1629 | $2172 | $2715 |
|
DIFFERENCE |
$60 | $120 | $179 | $239 | $299 |
| 10 YR DIF | $7200 | $14,400 | $21480 | $28680 | $35880 |
| Life of Mtge Dif | $21,600 | $43,200 | $64440 | $86040 | $107,640 |
Buyers who continue to wait for lower prices are kidding themselves as increased mortgage costs are likely to offset any price reductions.