While styles from the early 2000s appear to be back, mortgage interest rates are also. Today, mortgage interest rates for the 30-year fixed hit the highest level since December 15, 2000, when they were 7.42%. The 30-year fixed rose this week to 7.31% from 7.19%. This is disappointing to home buyers and potential sellers who forecasted that fall would be a lower-rate environment.
For home buyers purchasing an existing single-family home at a median price of $413,500, this translates into a monthly mortgage payment of $2,270. For new homes with a higher median price of $430,300, this is a payment of $2,362. Notably, while the 15-year fixed often relieves some buyers with a lower rate, it is now in the high 6% range and has hit 6.72%.
One item the early 2000s had was more housing inventory. In December of 2000, there were 1.87 million units on the market. In the latest months' data, there were 1.10 million existing units.
Let's hope that, like fashion, this high-interest rate trend fades as quickly as it appeared.