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But just how much have rates gone up and how much have monthly payments increased?
Even more importantly, are rates expected to keep trending higher?
Read on to learn more.
Also heres what yoursavings could look like if mortgage rates decrease.
As of August 2024, rates have stabilized and are hovering around the 6.5% to 7% level.
Looking back five years to 2019, theaverage mortgage ratewas 3.94%.
This puts market rates today roughly 3% higher.
Heres what that translates to in terms of dollars and cents.
Over the course of the mortgage, youd end up paying $211,879.72 in interest, as calculated byMortgageCalculator.com.
Even worse, over the life of your 30-year loan, youd pay a whopping $414,180.03 in interest.
That amounts to more than $200,000 in extra interest alone.
In 2019, 60-month auto loan rates on new vehicles averaged about 4.7%.
For a $25,000 car loan, the difference is stark.
In 2019, you could expect a monthly payment of $468.35.
Total interest over the life of that loan would amount to $3,101.15.
At a rate of 7.89%, however, that payment would be $505.59.
Thats more than $2,200 in additional interest, an increase of an incredible 72%.
As a result, rates are expected to continue trending lower in 2024 and 2025 and perhaps beyond.
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