Mortgage rates have been on the rise since around August of last year.
Rates, which on a 30-year fixed mortgage were at an all-time low of around 3.25% last year, are now not expected to go lower than the 4% mark anytime soon. This seemingly small hike can add hundreds, sometimes thousands, of dollars to a home buyer’s yearly payments.
For example, for a $200,000 house at the rate of 3.25%, your monthly mortgage payment would be $870.41. For the same house at the current rate of 4.25%, the monthly payment would be $983.88. Over the course of a 30-year loan, that extra bit a month adds up to $40,000.
"Experts in the field expect that mortgage rates will remain at this plateau for now or will rise in the near future," says Christina Lane, senior mortgage