The 30-year fixed-rate mortgage moved from 6.72% to 6.63% in the current week (-9 basis points). Over that same period, the 10-year yield moved from 4.38% to 4.23% today (-15 basis points).
Looking at the chart of the 30-year mortgage, the low came in 2021 near 2.65%. The high was in October 2023 near 7.79%. What did that do to the average mortgage rate on $100,000?
- At 2.65%, the monthly payment would’ve been at $402.69.
- At 7.79% the monthly payment ballooned to $718.19.
At the current rate of 6.63%, the payment is $641.16. That represents a 59% or $238.47 increase versus the low in 2021.
The good news is that at the high rate, the payment would have been $315.50 higher per month or 78.4% from the low.
Either way at 6.63%, the monthly payment is still a healthy difference of $238 per 100,000 versus the lows. On the median sales price for existing homes in the US at $435,000, that would represent an increase payment of $1,037.35 per month. That’s a big increase..
