{"id":11665,"date":"2023-09-10T19:27:28","date_gmt":"2023-09-10T19:27:28","guid":{"rendered":"http:\/\/lonecandle.com\/?p=11665"},"modified":"2023-09-10T19:27:28","modified_gmt":"2023-09-10T19:27:28","slug":"mortgage-rates-are-at-a-21-year-high-heres-what-that-means-for-you","status":"publish","type":"post","link":"https:\/\/lonecandle.com\/?p=11665","title":{"rendered":"Mortgage rates are at a 21-year high. Here\u2019s what that means for you."},"content":{"rendered":"\n

\n\n“According to Freddie Mac<\/a>, the rate for a 30-year fixed-rate mortgage has climbed to 7.09 percent, an uptick from the 5.13 percent it was at a year prior.<\/p>\n\n\n\n

A mortgage rate is \u201cthe interest rate charged for a home loan,<\/a>\u201d and effectively the monthly cost of borrowing that money. As mortgage rates have gone up, monthly payments have gotten more and more pricey for people looking to purchase a home even if the base price of the house stays the same.<\/p>\n\n\n\n

For example, under a 3.22 percent<\/a> 30-year fixed mortgage rate in January 2022, the monthly payment on a $400,000 house in New York with a 20 percent down payment was $1,716, per a Bankrate calculator. Now, under a 7.09 percent mortgage rate in August 2023, the monthly payment on the same house with the same price would be $2,477.<\/p>\n\n\n\n

Such costs have had an impact on the housing market: As mortgage rates have increased, some potential buyers have held off on purchasing houses, while sellers have similarly been less likely to list their property. For current homeowners, there\u2019s a major incentive to wait until rates go down before deciding to re-enter the market and search for their next house.<\/p>\n\n\n\n

\u201cThese higher mortgage costs are a tremendous barrier to entry for anyone wanting to enter the housing market,\u201d Gregory Daco, the chief economist for Ernst & Young<\/a>, tells Vox.”<\/p>\n\n\n\n

…<\/p>\n\n\n\n

“One of the biggest factors in the rise in mortgage rates is the Fed\u2019s approach to monetary policy, which includes interest rate hikes aimed at combating inflation.”<\/p>\n\n\n\n

https:\/\/www.vox.com\/money\/2023\/8\/18\/23837416\/mortgage-rates-surge-housing-market-supply-soft-landing<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

“According to Freddie Mac, the rate for a 30-year fixed-rate mortgage has climbed to 7.09 percent, an uptick from the 5.13 percent it was at a year prior.
\nA mortgage rate is \u201cthe interest rate charged for a home loan,\u201d and effectively the monthly cost of borrowing that money. As mortgage rates have gone up, monthly payments have gotten more and more pricey for people looking to purchase a home even if the base price of the house stays the same.<\/p>\n

For example, under a 3.22 percent 30-year fixed mortgage rate in January 2022, the monthly payment on a $400,000 house in New York with a 20 percent down payment was $1,716, per a Bankrate calculator. Now, under a 7.09 percent mortgage rate in August 2023, the monthly payment on the same house with the same price would be $2,477.<\/p>\n

Such costs have had an impact on the housing market: As mortgage rates have increased, some potential buyers have held off on purchasing houses, while sellers have similarly been less likely to list their property. For current homeowners, there\u2019s a major incentive to wait until rates go down before deciding to re-enter the market and search for their next house.<\/p>\n

\u201cThese higher mortgage costs are a tremendous barrier to entry for anyone wanting to enter the housing market,\u201d Gregory Daco, the chief economist for Ernst & Young, tells Vox.”<\/p>\n

…<\/p>\n

“One of the biggest factors in the rise in mortgage rates is the Fed\u2019s approach to monetary policy, which includes interest rate hikes aimed at combating inflation.”<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13],"tags":[217,165,270,1316,680,586,587],"class_list":["post-11665","post","type-post","status-publish","format-standard","hentry","category-article-share","tag-economics","tag-economy","tag-housing","tag-inflation","tag-mortgage","tag-the-fed","tag-the-federal-reserve"],"_links":{"self":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/11665","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11665"}],"version-history":[{"count":1,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/11665\/revisions"}],"predecessor-version":[{"id":11666,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/11665\/revisions\/11666"}],"wp:attachment":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11665"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11665"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11665"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}