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Freddie Mac: Mortgage rates hit highest mark since 2011.

Byline: Kevin Oklobzija

Buying a house costs significantly more today than it did a year ago, and not just because home prices have been on the rise.

While the New York State Association of Realtors reported that median sales prices rose $4,900 to $154,900 in Monroe County in August compared to August 2017, mortgage rates have also been creeping steadily higher.

Freddie Mac reported the average mortgage rate nationally rose to 4.72 percent last week, up from the 4.65 of the week before and a spike of nearly a full percentage point from the 3.83 that was reported for the last week of September 2017.

The 4.72 is the highest rate in more than seven years. In the week ending April 28, 2011, the 30-year mortgage rate was 4.78, according to historical date provided by Freddie Mac.

The most recent bump took place after the Federal Reserve raised interest rates another quarter percent to 2.25, the eighth rate hike since 2015.

Freddie Mac said a "robust economy, rising Treasury yields and the anticipation of more short-term rate hikes" fueled the mortgage-rate increase.

What does it mean if you're seeking a mortgage today? With $175,000 financed over 30 years, and assuming you have excellent credit, your monthly mortgage will be in the neighborhood of $910 (excluding taxes and insurance). That's up $92 a month from the same period one year ago. On a mortgage with $300,000 financed, the monthly payment would be around $1,403, up $156 year over year.

koklobzija@bridgetowermedia.com/(585) 653-4020

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Publication:Rochester Business Journal
Date:Oct 1, 2018
Words:272
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