By Jon Coile
Many economists say mortgage rates will continue to trend upward this year and peak around 5 percent at most, which is still below average. Mortgage rates averaged consistently above 10 percent every year between 1979 and 1990 and then eased down to a range from 6 to 8 percent between 1992 and 1998, according to Freddie Mac’s records.
But when you’re the one buying a house, you’re probably more concerned about today’s interest rate environment and whether you can afford the house of your dreams. A higher interest rate does mean your monthly mortgage payment will be higher — just how much depends on the hike in the interest rate and the size of your loan.
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