Home | Newsletter | Advertise
loading...

Mortgage Rates Spike: The Difference Two Weeks Makes

  • June 12th 2009

by Mark Wellborn

Mortgage Rates Spike: The Difference Two Weeks Makes: Figure 1

In the last two weeks, 30-year fixed-rate mortgage rates have jumped from 4.9 percent to 5.6 percent. Rates are now at their highest levels in six months and are threatening to put an end to what looked like a recovery across the nation’s housing market.

A weekly report from Freddie Mac noted that long-term mortgage rates are now averaging 5.59 percent, an increase of .3 percent over last week. Rates have not been this high since November 2008.

To put the rate change in perspective, we compare the payments on a four-bedroom rowhouse in Mount Pleasant on the market for $699,000 at today’s interest rates versus what they would’ve been just two weeks ago.

Monthly payment calculations based on a 15 percent down payment and a 30-year fixed rate mortgage at 4.9%:

  • Loan Amount: $594,150
  • Principal and Interest: $3,153
  • Real Estate Tax: $530
  • Est. Mortgage Insurance: $120
  • Total Monthly Payments: $3,803

Monthly payment calculations based on a 15 percent down payment and a 30-year fixed rate mortgage at 5.59%:

  • Loan Amount: $594,150
  • Principal and Interest: $3,407
  • Real Estate Tax: $530
  • Est. Mortgage Insurance: $120
  • Total Monthly Payments: $4,057

This article originally published at https://dc.urbanturf.com/articles/blog/mortgage_rates_spike_the_difference_two_weeks_makes/1024.

DC Real Estate Guides

Short guides to navigating the DC-area real estate market

We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!

First-Timer Primers

Intro guides for first-time home buyers

Red Flags Revealed During a Home Inspection Top 5 Tax Breaks For Homeowners Tax Relief for DC Homeowners
Condo Fee Tutorial What is a Rent Back? 10 Ways To Tell If a Home Renovation is Well Done
Obtaining a Basic Business License For Your Rental What is an Adjustable Rate Mortgage? The Splitting the Rent Formula
How Much Cash Do You Need to Buy a House? Is This Condo Building Financially Healthy? Interest Rates and Mortgage Points
The Scoop on Mortgage Insurance

Unique Spaces

Awesome and unusual real estate from across the DC Metro

The Most Intriguing Loft in DC The R Street Firehouse DC’s One-Room House
Dupont Circle’s Old Frat House To Become Alley Home Best Transition From a Garage To a Home The Roundhouse
Tilden Gardens Restaurant-Turned-Home Hits Market Next Week Logan Circle’s Most Intriguing Garage Frank Lloyd Wright Goes Green in Kensington
Sears Bungalow Gets a Modern Makeover Old Town General Store Becomes Three-Level Home Making the Most of a Skinny House
A Studio 27 Renovation on Capitol Hill Once a Carriage House, Now a Home The Bank that Became a Home
From Pie to Hooch to Heroin to Home The Live-Aboards of Gangplank Marina A Treehouse with Rock Creek Park As A Backyard
Modern Tranquility in Sperryville Saddle Up For Stable Living Throwing a Curve at 550 Square Feet
A Modern Hilltop Retreat Tilden Street Restaurant Becomes Spacious Home Focus on Design: A Vastu Unit at 22 West
The DC Area’s First Net Zero Home A Yankee Goes Green DC’s First Carbon Neutral Home
Eco-Friendly Alley House Off H Street The Gym, The Stables and The Firehouse