Since late 2022, mortgage rates have jumped to between 6% and 7% — and in fall 2023, they nearly eclipsed 8%, marking the highest 30-year mortgage rate seen in over two decades.
Combined with rising home prices, higher rates have sent mortgage payments soaring. According to the Mortgage Bankers Association, the median monthly mortgage payment on new home purchases is now $2,219 — up 2.5% from a year ago. The increase has sidelined many home buyers and deterred existing homeowners from selling (about 9 in 10 have current rates under 6% and may not want to let go of that lower rate).
It raises the question: Just how long can these higher rates last? And when, if at all, can consumers expect mortgage rates to go down enough for monthly payments to become a little more manageable? Here’s what we know.
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