A surge in mortgage interest rates this week to their highest level in two years puts further financial burden on homebuyers in a highly competitive market, but opinions differ on what the increase will mean for sales in capricious South Florida.
The jump to a 4.46 percent rate for a 30-year fixed mortgage from 3.39 percent is the biggest one-week increase since 1987 and the highest rate since July 2011. It’s also the first time the rate has surpassed 4 percent since March 2012, according to federal mortgage backer Freddie Mac.
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At the current interest rate, a fixed 30-year mortgage of $200,000 would have a monthly payment of $1008.62. That’s $106.06 more per month -- $38,181 over the life of the loan -- than if the mortgage was taken out at May’s average interest rate of 3.54 percent.