Mortgage rates are on the upswing. Reuters reports on the possible ramifications:
The U.S. housing market, already struggling with tight inventory and rising building costs, faces a fresh headwind as 30-year mortgage rates rise close to the 5 percent threshold for the first time in years.
Even as home prices have climbed steadily thanks largely to a lack of supply of homes for sale, housing affordability has remained relatively stable thanks to historically low borrowing costs.
But that is changing. Mortgage rates have surged to 4.97 percent from 4.23 percent in January, according to the Mortgage Bankers Association. Including fees, most 30-year mortgage costs have reached 5 percent or higher.
The rise in mortgage rates so far this year means a potential homebuyer would pay about $35,000 more interest on a $220,000 loan over 30 years.