USA Today reports that 30-year Mortgage Interest rates have spiked higher this past week to an average of 4.46% from 3.93% affecting Arizona home buyers. This is the largest weekly increase since April 1987 according to Freddie Mac. This sharp rate increase means higher monthly payments and getting less home for the money.
“A buyer taking out a $200,000 mortgage at a 3.35% rate would pay $881 a month, according to Bankrate.com. The monthly mortgage payment jumps to $1,008 a month at a rate of 4.46%. That’s an increase of $127 a month, which over 30 years adds $45,720 to the cost of the loan. The figures don’t include taxes and insurance.”
Arizona home prices are already rising throughout the valley due to a lack of homes for sale making it a “Seller’s market”. Arizona home buyers should consider their options of buying a home sooner than later to lock in the lowest possible interest rate & payment.