Rising Interest Rates Cost Home Buyers an Extra $1,416 per Year

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How does the increase in interest rate hikes affect new home ownership? As interest rates continue to rise, so does the cost of financing a home. Based on National Averages, the most recent rate hike will add an additional $1,416 in annual expense for new homeowners. “According to Zillow’s latest report, the hike in rates has led the monthly mortgage payment for a median-priced home to increase 15.6 percent since Aug. 2017, which breaks down to an extra $118 per month or $1,416 per year.” The Fed is expected to make 5 additional rate hikes by the end of 2019. What does that mean for home buyers? The sooner you can lock in a lower rate the better. For the long term, in the Girdwood market, rising interest rates may slow the pace of home value growth and drive us to a more balanced market.

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