Mohacsy's Safe Portfolio Member Forum

[santafe2]

This morning I was gauging the additional cost of a 30 year mortgage since the rate bottom at the end of 2020. For about two months 30 year mortgage rates hovered around 2.7% according to the St. Louis Fed. Last week's average was 6.29%.

For a buyer with a $500,000 mortgage the monthly cost has changed from $2,028 to $3,091 or a rise of 52%. For a buyer to maintain a similar payment today, they could only afford a $325,000 home.

Since rates will likely continue upward through the remainder of the year it doesn't seem difficult to predict that the housing market will continue to cool.