Mortgage rates in the United States now average 7%

What does that mean for homeowners and homebuyers?

Mortgage rates in the United States are averaging 7%, the highest they have been in more than 20 years.

This will impact both homeowners and homebuyers in a number of ways.

For homeowners, the higher rates will mean that their monthly mortgage payments may increase. This will be especially true for those who have adjustable rate mortgages or who are refinancing their loans.

For homebuyers, the higher rates mean that they will need to qualify for a smaller loan amount or pay more in interest each month.

What is causing these interest rates to go up?

There are several factors that are contributing to the increase in interest rates nationally, including:

• The Federal Reserve is raising its target interest rate to fight inflation.
• The demand for mortgages is increasing as more people look to buy homes.
• The supply of mortgage-backed securities is decreasing.

What can homeowners and homebuyers do to prepare for these higher rates?

There are a few things that homeowners and homebuyers can do to prepare for higher interest rates:

• Create a budget and make sure that you can afford the new monthly mortgage payments.
• Shop around for the best interest rate on your mortgage.
• Consider refinancing your mortgage to a lower interest rate.
• Make extra payments on your mortgage to pay it down faster.