The average interest rate of a 30 year fixed rate mortgage recently rose by 8 basis point to 4.39% over the course of a week, according to Freddie Mac. This year so far, mortgage rates have risen almost one percent and are currently higher than they have been since August 2011. This rise in mortgage rates can have a negative effect on housing affordability in the recovering market by dictating higher monthly mortgage payments, though this can be balanced through a higher down payment. Moreover, as interest rates climb, the increase required in the down payment lowers.
Read the full article here: The Impact of Rising Interest Rates on Housing Affordability