The Phaserl


What Higher Mortgage Rates Mean in the Real World

Rising mortgage rates reduce household purchasing power just like higher taxes and inflation.

by Charles H. Smith, Of Two Minds:

Mortgage rates have jumped significantly in the past few weeks, from 3.50% at the beginning of May to the current rate of 4.875% for conventional Fannie Mae mortgages.

These are the two rates quoted by a mortgage broker in Mish’s recent post on rising mortgage rates.

Here is the repayment summary for both rates courtesy of

I plugged in these parameters, basing them on the average cost of a new home and a mid-range property tax rate:

$360,000 home value, $300,000 mortgage, annual property tax rate of 1%, interest rate of 3.50%:

Monthly Payment: $1,647.13

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