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mortgage rates on the rise at the highest levels in 10 weeks. Elizabeth Schultz is here with what's behind it and what it could mean for the housing market. Good morning, Elizabeth. Hey, good morning to you. And this is a little bit disheartening for anyone who's trying to buy a home. The average rate on a 30 year fixed mortgage just reached 6.77% and that is up from last week. It's now the highest level in two months. The timing here is critical because we're gearing up for the spring housing market, which is typically
the busiest time of year to buy or sell a home. So these higher rates could keep some buyers on the sidelines. Why are mortgage rates up? Well, they are very sensitive to inflation data and to the Fed. And this week's inflation report showed that prices increased more than expected. So the Fed might have to wait a little bit longer to lower interest rates with that first rate cut in May or June instead of in March. Here's what it all means for your bottom line. If you are taking out a $400,000 mortgage, your monthly payment at today's rates
is $2,600. One year ago, when rates were closer to 6%, your payment would have been 24.81, about 120 bucks cheaper. Two years ago, and this is really where you can see the difference, when rates were near historic lows at 3%, your monthly payment would have been nearly $800 cheaper at 18.39. Most analysts are expecting rates will stay in this 5% to 6% range this year, but if you're looking for the silver lining, it is still better than that.
18% peak that we saw four decades ago, guys. Four decades ago. It doesn't seem that far off. All right. Thanks so much, Elizabeth. Well, hey there, GMA fans. Robin Roberts here.
