Mortgage interest rates have trended up over the last 30 days. The recent change will cost new borrowers about $26 per month for every $100,000 borrowed. Average U.S. interest rates for 30-year fixed rate mortgages were at 7.57% as of this week. Last month at this time, they were sitting at 7.18%.
Recent forecasts for changes in interest rates are mixed but trending slightly higher overall. At this point, it looks like we have a good shot at crossing over the long-term historical average (7.74%) mortgage interest rate in our country before the end of 2023. When you compare monthly payments at today’s rates versus the long-term average, homeowners are currently saving about $12 per month per $100,000 borrowed.
Mortgages are 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 $42 per month over the last year. If you max out a conventional mortgage, that means your monthly payment will be around $305 more per month now than it would have been in October of 2022.