The US housing market is in for a wild ride. As rates rise to new highs, the average interest rate on a 30Y Mortgage is nearing 7%. In other words, if you bought a home in 2021 at 3% interest, moving to a new home today would increase your rate by ~400 basis points. Assuming you buy a $500,000 home with 20% down: 1. Monthly Payment at 3% Interest: $1,686/mo 2. Monthly Payment at 7% Interest: $2,661/mo That's an increase of almost $1,000/mo, or +58%. The already stagnant housing market is set to freeze.
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