Mortgage interest rates have risen sharply again over the last 30 days. The recent change will cost new borrowers over $59 per month for every $100,000 borrowed. Average U.S. interest rates for 30-year fixed rate mortgages were at 6.92% as of this week. Last month at this time, they were sitting at 6.02%.
Recent forecasts for changes in interest rates have generally been slightly up. In fact, we are now within striking distance of rates being higher than the historical average (7.76%) mortgage interest rates in our country. When you compare monthly payments at today’s rates versus the long-term average, homeowners are currently saving about $57 per month per $100,000 borrowed. That makes mortgaging today’s homes just slightly more affordable than historic averages.
However, mortgages are significantly more expensive now than they were last year at this time. The average increase in monthly payments per $100,000 borrowed with a 30-year fixed price mortgage is around $233 per month over the last year. If you max out a conventional mortgage, that means your monthly payment will be around $1,500 more per month now than it would have been in October of 2021.