Mortgage rates have reached their highest level since 2008, according to Freddie Mac. The average rate on a 30-year fixed-rate mortgage is now 6.3%, up from 5.8% last week. This is the highest rate since November 2008, when the average rate was 6.41%..
The increase in mortgage rates is being driven by a number of factors, including the Federal Reserve’s decision to raise interest rates. The Fed has raised interest rates four times this year, and it is expected to raise rates again at its next meeting in September..
The increase in mortgage rates is making it more expensive for people to buy homes. For example, a borrower who takes out a $300,000 mortgage at 6.3% will pay about $1,900 more in interest over the life of the loan than a borrower who took out a mortgage at 5.8%..
The increase in mortgage rates is also having a negative impact on the housing market. The number of homes for sale has declined, and the prices of homes are starting to fall..
The increase in mortgage rates is a major concern for the economy. The housing market is a major driver of the economy, and the increase in mortgage rates could slow down the economy..
Here are some tips for coping with rising mortgage rates:.
* Shop around for the best mortgage rate..
* Consider a shorter-term mortgage, such as a 15-year or 20-year mortgage..
* Make extra payments on your mortgage each month..
* Refinance your mortgage if you have a good credit score and your home’s value has increased..
The increase in mortgage rates is a challenge, but it is not insurmountable. By taking the right steps, you can still afford to buy a home and achieve your financial goals..
