As 30-year mortgage rates hit 6.7%, homebuyers are facing ‘payment shock.’ Here are ways to save
Even with signs that the housing market is cooling, homebuyers are still feeling the sting of elevated prices and higher interest rates.
The average rate on a 30-year fixed-rate mortgage is 6.7% as of Friday, up from 3.3% at the start of 2022, according to Mortgage News Daily. Alongside that, home prices — the median is $435,000 — are up 13.1% on average from a year ago, according to Realtor.com.
“I think the major problem is payment shock,” said Stephen Rinaldi, president and founder of Rinaldi Group, a mortgage broker based near Philadelphia. “When I sit down with clients and the rate is in the 6s, their payment is outrageous sometimes.”