Source: Salem News —
American homeowners are feeling the pinch as the Federal Reserve continues to ratchet up interest rates to combat inflation.
The average rate for a 30-year fixed rate mortgage rose above 6% this month for the first time since 2008, putting both house hunters and homeowners in a bind.
The higher rate for fixed-rate mortgages is forcing more prospective buyers to sit on the sidelines of the housing market and continue renting instead. Yet raised rates will also hit people with variable-rate mortgages, which periodically adjust their rates in step with rate changes for new loans.
While such changes will leave many borrowers feeling helpless, financial advisers say there are several options they can take to offset the pain of rate hikes.
Up and Up
The average rate on a 30-year fixed mortgage has more than doubled from a year ago, when it was just 2.86%, per a recent Freddie Mac survey.
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