NORFOLK, Va. — Mortgage rates have hit their highest level since 2001. New data shows rates sit at an average of 7.2%.
Despite the scary number, experts are advising buyers not to end their house hunting just yet.
Mortgage rates are sky-high right now, putting many potential home buyers in a panic. But there is some good news. Recent market uncertainty and rising mortgage rates could influence desperate sellers to meet you at your price.
Home sales are at the lowest rate in more than a decade, according to a new report from Virginia Realtors. Right now the median sale price for a home across the Commonwealth is around $400,000.
"Even though it's a higher interest rate, it would be within a level to which I could maintain the carrying costs for a home here in Virginia," one potential buyer told us.
Breaking the math down for you a little bit, if you were to invest in a 30-year fixed mortgage, you could end up paying up to 6% in interest. So for that $400,000 home, your monthly mortgage would be about $80 more, bringing your total monthly bill to $2200.
Now there's always the option to refinance once rates go back do, but financial experts say it's important to weigh your budget and needs before making any big financial decisions.
"You need to buy a home within the next year or so, so in that case, you're better off acting sooner and locking your rate sooner," said an expert we talked to.
Experts say home buyers should be flexible in this tough market. They say if your seller has already found a home, then you might want to close quickly.
If not, you can give sellers a longer closer timeline to help them find a new home.