WEB Notes: And so it goes. Can we say we were not warned? This is going to bring the housing market back down to reality. Higher rates mean you can afford less house than before. Remember, in previous articles we have documented for you Americans are in record debt, and they once again are using their homes for an ATM card. No equity in your home means your ATM just dried up.
Buying a home just got a bit more expensive.
Rates on the most common mortgage topped 5 percent for the first time since February 2011, making it even harder for buyers to get an affordable house.
The average rate on the 30-year fixed-rate home loan – the most popular mortgages for purchases – increased to 5.05 percent last week, up from 4.96 the previous week and 4.16 percent a year earlier, according to the Mortgage Bankers Association. Rates on other types of home loans – jumbo, FHA, 15-year and 5/1 adjustable-rate – all hit multi-year highs.