The 30-year fixed mortgage interest rate now sits at 7.49%, up from 7.31% last week. For buyers who are purchasing the median priced existing-home of $407,100, this is a monthly mortgage payment of $2,275.
As mortgage interest rates continue to sit at a 23-year high, it is striking to consider a home buyer who purchased in January 2021, when rates were 2.65%. The same home buyer who purchased at $400,000 at that time would pay $1,289 a month for a mortgage, compared to a buyer purchasing today paying $2,235 a month. The difference of $946 could be used for utilities, food, commuting expenses, student debt payments, and for many households the sum total of all expenses.
It is hard to imagine a seller making a move today unless they had a compelling reason to, such as a new significantly higher paid job across the country, a divorce or death, or paying in cash for their next home. For all other households, carpools and remodeling may be the alternative solutions.