Apr 10

The Impact of High Mortgage Rates

The sharp rise in mortgage rates this year has added hundreds of dollars to new monthly mortgage payments.

In fact, climbing rates have caused the monthly amount of a new mortgage payment to increase by an average of $258.57. That equals an average of an extra $3,102.84 per year and an average of $93,085.20 over the lifetime of a 30-year loan, according to a new LendingTree study that puts a dollar amount on how much rates have affected mortgage costs.

LendingTree calculated the difference between average monthly mortgage payments of a 30-year fixed-rate loan in each state based on average annual percentage rates in January and April 2022. They found that mortgage payments have risen the most in California, Washington, and Massachusetts. Mortgage payments have increased the least in Ohio, West Virginia, and Kentucky, the study finds.

APRs on the 30-year fixed-rate mortgage have jumped by an average of 1.46 percentage points across all 50 states since January, when the average APR was 3.79%. In April, it was 5.25%, according to LendingTree.

“Though mortgage APRs have already significantly increased since the start of the year, they may rise even further by 2023,” says Jacob Channel, LendingTree’s senior economic analyst. “This is especially true given that the Federal Reserve is poised to raise the Fed funds rate multiple times this year—including what is likely to be a 50 basis point hike announced this week—which will likely put even more upward pressure on mortgage rates.”

While mortgage rates are still low by historical standards, home buyers also are facing higher prices for homes. In the first quarter, 70% of the largest metros in the U.S. posted double-digit price growth in median single-family existing-home sales prices, the National Association of REALTORS® reported Tuesday. Read more: U.S. Metros See Major Price Appreciation

 

©National Association of REALTORS®
Reprinted with permission

admin

For all of your Real Estate needs, place yourself in the competent hands of a career Realtor who is a Philadelphia native and Delaware County resident. Skilled, smart and enthusiastic about his work and his life, Anthony DiDonato has the appealing combination of business sense and people skills gives him an edge in an industry that demands both.

Educated at Drexel University with a dual major in accounting and finance and minors in management and psychology Anthony DiDonato offers over 25 years of experience in the real estate industry. He has been a real estate investor since 1985 and a member of H.A.P.C.O. (Landlord Association). He became a licensed Realtor in 1992 and a member of the Local, Pennsylvania and National Associations of Realtors. Anthony DiDonato is also a member of the Computerized Multiple Listings, (MLS) and Internet Marketing Programs. In 1997 Anthony DiDonato became Century 21 All-Elite, Inc. Corporate Secretary.

Anthony DiDonato believes in taking his profession to the highest level of quality service. He is known for finding that “perfect” property in Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania for his buyers and helping his sellers prepare their properties so they sell quickly and efficiently.

When it comes time to negotiate the terms of a contract, Anthony DiDonato has the knowledge, experience, and professionalism applied to meeting – or exceeding – his clients’ expectations. His service to his clients is second to none. His honesty and integrity have been his claim to fame.

For Superior Real Estate Representation in the Delaware Valley, Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania… call Anthony DiDonato.