Mortgage Rates Spike: The Difference Two Weeks Makes

• June 12th 2009

by Mark Wellborn

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In the last two weeks, 30-year fixed-rate mortgage rates have jumped from 4.9 percent to 5.6 percent. Rates are now at their highest levels in six months and are threatening to put an end to what looked like a recovery across the nation’s housing market.

A weekly report from Freddie Mac noted that long-term mortgage rates are now averaging 5.59 percent, an increase of .3 percent over last week. Rates have not been this high since November 2008.

To put the rate change in perspective, we compare the payments on a four-bedroom rowhouse in Mount Pleasant on the market for $699,000 at today’s interest rates versus what they would’ve been just two weeks ago.

Monthly payment calculations based on a 15 percent down payment and a 30-year fixed rate mortgage at 4.9%:

• Loan Amount: $594,150
• Principal and Interest: $3,153
• Real Estate Tax: $530
• Est. Mortgage Insurance: $120
• Total Monthly Payments: $3,803

Monthly payment calculations based on a 15 percent down payment and a 30-year fixed rate mortgage at 5.59%:

• Loan Amount: $594,150
• Principal and Interest: $3,407
• Real Estate Tax: $530
• Est. Mortgage Insurance: $120
• Total Monthly Payments: $4,057

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/mortgage_rates_spike_the_difference_two_weeks_makes/1024.