Mortgage rates moved higher this week, and the timing couldn't be worse for anyone who was hoping to buy before spring.
The average 30-year fixed rate climbed to around 6.9%, according to the latest weekly survey from Freddie Mac.
That's up from roughly 6.7% a week earlier and marks the first meaningful jump after a stretch of slow declines.
The 15-year fixed rate, popular with refinancers, edged up to about 6.1%.
Mortgage rates track the 10-year Treasury yield, which jumped after a round of stronger-than-expected economic data and cautious comments from Federal Reserve officials.
When investors think the Fed will keep rates higher for longer, mortgage rates tend to follow.
On a $400,000 loan, the difference between 6.7% and 6.9% adds about $53 to your monthly payment.
Over 30 years, that's roughly $19,000 in extra interest.
A household earning the median US income can afford far less house than it could three years ago, when rates were under 3%.
Many would-be buyers are still sitting on the sidelines, waiting for a break that keeps not arriving.
Higher rates shrink the pool of qualified buyers, which is one reason inventory has been creeping up in parts of the South and Midwest.
More homes on the market sounds good for buyers, but only if they can stomach the payment.
Refinancing is mostly a non-starter right now.
The vast majority of homeowners already hold mortgages well below today's rates, so there's little incentive to trade a 4% loan for a 7% one.
Cash-out refinancing is still possible for those who need equity, but it's expensive.
If you're shopping, get pre-approved with at least two lenders and compare the full loan estimate, not just the headline rate.
Points, origination fees, and mortgage insurance can swing your real cost by thousands.
If you're not buying anytime soon, focus on the things you control.
Paying down high-interest credit card debt, building an emergency fund, and improving your credit score can all lower the rate you're offered when you do apply.
A score bump from 680 to 740 can shave real money off your quote.
If inflation data cools again, rates could drift back down.
If it doesn't, today's numbers might start looking like a bargain.
The honest takeaway: nobody knows where rates go next, and waiting for the perfect number has burned plenty of buyers.
Final Thoughts
The smarter move is getting your finances in order now so you can act quickly when the right house and the right rate line up.