- Mortgage rates are rising rapidly toward 5% with the average 30-year fixed-rate mortgage currently at 4.86%. If it hits 5.5%, it would be the highest level since 2008.
- Most homebuyers cannot exceed their specific budget, meaning higher mortgage rates will eventually push down home prices if given enough time.
- A 30-year rate of 5.5% will ruffle the market and if it gets to 6%, there will be some pain.
The average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($ 453,100 or less) and a 20% down-payment jumped to 4.86% for the week ending May 18, the Mortgage Bankers Association (MBA) reported this morning. This is up from 4.73% a month ago (chart via Trading Economics, red marks added). On the way to 5%:
Mortgage Bankers Association of AmericaSee the rest of the story at Business Insider
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