Mortgage rates are rising faster than they have in more than a decade

The interest rate on a 30-year mortgage, the loan most Americans use to buy a home, has risen to 4.8% from 4.5% just a week ago. fastest growing in more than a decade.

Mortgage rates have not risen as rapidly since February 2011, according to the Association of Mortgage Bankers. This exacerbates the difficulty of buying a home, with Mike Fratantoni, the chief economist of the trading group, also pointing out the shortage of properties for sale. The 4.8% rate on a standard loan is the highest since December 2018.

Last week’s 0.3% rate hike would cost a 30-year-old homebuyer using a conventional 30-year mortgage to buy an average-priced home for an additional $ 300 a month, said senior economist Nadia Evangelou and forecast director of the National Association of Real Estate Agents. CBS MoneyWatch.

Mortgage rates are rising as residential real estate prices continue to rise, boosting dream of owning a home beyond the means of many middle-class Americans, who have to compete against higher-income investors and buyers.

Home prices in 20 major cities rose 19% in January from a year ago, according to the latest S&P CoreLogic Case-Shiller index. Residential real estate costs have continued to rise due to the shortage of housing in the market and the accumulated demand from buyers as COVID-19[feminine[feminine loosens US control

Atlanta, Georgia; Charlotte, North Carolina; Phoenix, Arizona; Miami, Florida and San Diego, California they are experiencing some of the largest home price increases in the US Meanwhile, as mortgage rates rise, there are more buyers adjustable rate mortgages - one of the financial culprits of the 2006 housing crisis.

A Bankrate poll released on Wednesday found that more than 40% of respondents said they did not earn enough to buy a home or pay a down payment and closing costs. One in five said a home cannot be afforded because mortgage rates are too high.

"High and rising house prices may contribute to the feeling of not having enough accumulated income or savings to buy a home," Bankrate chief financial analyst Greg McBride said in a statement on Wednesday.