Source: CNBC —
Fewer people are shopping for homes, a sign that homebuyers are getting priced out of the market due to surging mortgage rates, which spiked to an average of 5% this week for 30-year fixed-rate mortgages.
The fixed-rate mortgage rate jumped 0.28% in the last week alone, reaching a high not seen since February 2011, according to government-mortgage company Freddie Mac. A year ago, the 30-year rate averaged 3.04%, which is nearly 2% lower than the rate now.
That 2% difference can add hundreds of dollars to the monthly cost of financing a home, making it unaffordable for some potential buyers.
